Last December 11, 2024, the bicameral conference committee decided to remove the P74-billion subsidy for PhilHealth. The Senate has agreed to remove the Philhealth subsidy for 2025 due to its accumulated 600 billion in reserved funds.
In an interview, Senator Chiz Escudero said that it is a reminder to PhilHealth to do better as a healthcare institution. PhilHealth incompetence such as delays in reimbursement is one of the reasons for this decision.
Sen. Escudero also stated that the incompetence of PhilHealth led to the creation of the Department of Health’s Medical Assistance to Indigent Patients. This was created to provide financial assistance to Filipinos who can’t afford hospital bills.
It is worth noting that earlier this year, PhilHealth requested a budget of Php 150.92 billion to fund premiums for 25.28 million indirect contributors.
This amount was significantly cut to P53.13 billion in the National Expenditure Program and the General Appropriations Bill. Social Watch reported that the Senate further reduced the proposed allocation to P47 billion.
Despite this, senators say that there’s nothing to worry about. Future operations of PhilHealth will not be affected by this budget cut. In addition, Senator Poe also said that the 600 billion reserve funds must be used first to compensate for the delayed reimbursement.
Many groups were not satisfied with this decision and called it an insult to the members of PhilHealth.
Groups such as Social Watch criticized the zero budget allocation for the premium contributions of indirect contributors, including senior citizens, persons with disabilities, and vulnerable Filipinos. They described it as a clear neglect of the state’s responsibility to ensure genuine universal healthcare.
The group also argued that this decision violates the Sin Tax Law. The law requires that at least P69.81 billion from earmarked funds be allocated to PhilHealth’s indirect contributors.
Senator Bong Go also expressed strong disapproval against the said zero budget cut. In his statement, he said “Let’s give PhilHealth a proper and sufficient budget and encourage PhilHealth to maximize the use of its funds for their health-related programs and services”
Currently, the said zero budget cut is still a heavy discussion in the Senate and on social media.
Source:
https://newsinfo.inquirer.net/2014984/philhealths-zero-subsidy-for-2025-an-insult-to-members-group