PhilHealth’s 2025 Budget Cuts: What Every Filipino Worker Needs to Know

The recent approval of the 2025 budget for PhilHealth has stirred concerns, particularly as the national government will no longer be providing any subsidy to the agency. Instead, PhilHealth will rely on its PHP 600 billion in reserve funds. This decision has led to some skepticism, especially regarding the long-term sustainability of the healthcare system without direct funding from the national budget.

Many Filipino employee workers rely on PhilHealth budget for healthcare coverage, the lack of subsidy raises several questions:

Why This Matters:

PhilHealth’s reserves should be a backup, not a primary funding source. If unexpected healthcare crises arise or if contributions decline, could these reserves sustain the system?

The Risks We Face:

1. Limited Service Coverage
   With reduced funding, will PhilHealth maintain current benefit packages or be forced to scale back services?
2. Delayed Claims Processing
   Past incidents of delayed reimbursements could worsen if financial reserves are stretched thin.
3. Healthcare Inequality
   Millions of Filipinos—especially senior citizens, low-income workers, and the unemployed—rely on PhilHealth for essential care. Any cuts could leave the most vulnerable without critical health support.

What Does This Mean for Filipinos according to PhilStarLife?

Dr. Tony Leachon, former special adviser for non-communicable diseases at the Department of Health, emphasized that the lack of funding will negatively affect indirect contributors, such as senior citizens, indigents, and PWDs. 

“The direct contributors will carry the brunt of funding PhilHealth,” Leachon said. He criticized the prioritization of reducing health services for the public over ensuring access to healthcare with dignity-

Senator Risa Hontiveros has also strongly opposed this decision, calling it “unfair, illegal, and potentially unconstitutional.” She warned that the zero budget could undermine the implementation of the Universal Healthcare Law, potentially leaving millions of Filipinos without sufficient coverage. 

“Obligasyon ng gobyerno na bayaran ang premiums ng mga indirect contributors, kabilang ang mga mahihirap, senior citizens at PWDs,” Hontiveros stated. 

“Kapag inabandona ito ng gobyerno, ang papasan dito ay ang mga ordinaryong mamamayan na buwan-buwan kinakaltasan ng PhilHealth.” 

She raised concerns about the impact on citizens who may not be able to afford their premium contributions .

Hontiveros also referenced key laws that mandate the funding of PhilHealth, including the PhilHealth Charter, the Sin Tax Law, and the Universal Health Care Act. These laws specify that portions of certain taxes should go to the state health insurer, regardless of the supposed availability of “excess or reserve funds.”

Senator JV Ejercito, the principal author of the Universal Health Care Act, expressed concerns about the legality of the move, noting that the PHP 600 billion in reserves may not be a legally viable long-term solution, given that some of these funds are already earmarked by law.

A Working Professicern: Will Our Healthcare Coverage Hold Up?

Many employees rely on PhilHealth as their primary healthcare provider, and with the recent funding cuts, there are legitimate concerns about the stability of healthcare coverage in the country. While PHP 600 billion in reserve funds might seem like a substantial amount, it is important to remember that these funds were designed to serve as a safety net, not a replacement for the government’s subsidy. The shift in funding structure poses significant risks to the sustainability and accessibility of healthcare in the long term.

Senator Christopher “Bong” Go, chairperson of the Senate Committee on Health, voiced his disappointment over both chambers of Congress giving PhilHealth a “zero” budget. 

“Dapat po ang pondo ng PhilHealth ay para sa health kaya nga po PhilHealth… Papaano po magbebenefit ang mga pasyente kung zero ang budget ng PhilHealth?” Go said during a plenary session. He expressed his strong reservations regarding the decision, underlining that health programs must be properly funded and that every peso of public funds should be used wisely .

This decision to cut PhilHealth’s a critical issue that needs careful attention, especially for working professionals who rely on the agency for medical coverage. As the situation unfolds, it’s essential for Filipinos to stay informed about these developments and advocate for a more sustainable and equitable healthcare system for everyone.