THE Philippine Health Insurance Corp. (PhilHealth) has been allocated a P53.26-billion subsidy in the proposed P6.793-trillion national budget for 2026, the Department of Finance (DoF) said on Wednesday.
“In 2026, there is a subsidy for PhilHealth,” Finance Secretary Ralph G. Recto said on Wednesday in chance remarks to reporters.
The subsidy allocation reverses the policy adopted during the drafting of the 2025 budget, when the health insurer received zero subsidies.
The National Expenditure Program (NEP) for 2025 — the document prepared by the Executive Branch to serve as the basis for Congressional deliberations — had granted PhilHealth a P74.43-billion subsidy, which was rejected by legislators, citing the health insurer’s substantial reserves.
“But not only that, the Department of Health budget will also be increased. So, education and health will be the priorities of the President. Human resource development, essentially,” Mr. Recto said.
The DoF said the state-insurer’s fund balance is projected at P348 billion for the end of 2025, which he said hold the potential for growing PhilHealth’s benefit packages substantially.
The NEP is expected to be submitted to Congress within 30 days after the opening of the regular session on July 28.
Mr. Recto said the immediate issue is the shortage of hospital care in the provinces.
“But definitely, we will improve the services of all DoH-run hospitals within this year and next year. It might really become zero-balance billing, including the specialty hospitals,” Mr. Recto said. He was referring to a policy that keeps qualified low-income beneficiaries from paying out of pocket.
On Wednesday, Mr. Recto said he came from a meeting in Malacañang to discuss improving health benefit packages, especially for DoH hospitals.
He ruled out a contribution rate hike as there is “so much money within PhilHealth.”
The Supreme Court issued a temporary restraining order last year to stop the transfer of P29.9 billion from PhilHealth to the National Government after an initial transfer of P60 billion. The government had been attempting to tap PhilHealth’s reserves to supplement the national budget.
The Governance Commission for Government-Owned or -Controlled Corporations, which regulates government companies, has said PhilHealth will undergo a “major revamp” to improve its efficiency and address operational challenges.
The health insurer booked a net loss of P192.96 billion in 2024, narrower than the P708.72-billion loss posted in 2023. — Aubrey Rose A. Inosante
