2025 Budget of Philippines allocates ‘Zero Subsidy’ for the PhilHealth Insurance

Controversy broke out after the announcement of the zero subsidy to the PhilHealth insurance in the 2025 Philippines budget due to the substantial reserve fund around P600 billion. The health advocates, organizations and many lawmakers which includes Senator Mary Grace Poe, who argued to allocate the funds which are spent on PhilHealth must be transferred to the financial needs.

PhilHealth

PhilHealth/the Philippine Health Insurance Corporation was launched in 1995, through the Republic Act no.7875. The benefits which are aimed to deliver to the citizens of the Philippines are to provide quality healthcare services to the underprivileged and vulnerable communities. Over the years the importance of this insurance grew predominant to all the Filipinos.

Zero Subsidy – PhilHealth

On Thursday, the Senate President Francis Escudero announced that there will be zero subsidy for the PhilHealth Insurance in the 2025 National Budget and will function actively without the subsidy.

“That’s because of their own failure. This should serve as a wake up call for them. Doing their job is not a slap on their face. We will reward their failure by giving them a budget that won’t be used”, said Escudero

After the official announcement Senator Grace Poe stated regarding the fund which will be transferred to the other sectors including financial and economic senators. To avert the wrongly or overpaid members of this PhilHealth insurance the government has decided on the zero subsidy. 

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“PhilHealth has P600 million in reserve funds and they should use these to address delayed reimbursements, and we will use this (funding subsidy) to fund departments that need it more” – Senator Poe 

The opposers of defunding agreed to the joint statement which was signed by them together and alleged that it is against the 2012 Sin Tax Reform Law and the 2019 Universal Healthcare Act(Under Section-288-A, 80% of revenues from sin tax of tobacco products and sugar sweetened beverages are sent to PhilHealth)which will ruin the benefits received by the members of this insurance who are estimated around more than ten millions.

“It is the government’s mandate to uphold the people’s constitutional right to health by providing the appropriations that will cover the premiums of indirect contributors or those who cannot afford to pay”