Congress urged to restore PhilHealth budget

A GROUP has urged Congress to restore the funding it cut from the Philippine Health Insurance Corp.’s (PhilHealth) budget next year as lawmakers finalize this next year’s national spending plan, citing the need for the agency to cover the premiums of its contributors.

PhilHealth had requested a budget of P150.92 billion for 2025, covering the premiums of 25.28 million indirect contributors, the group, led by Senate Minority Leader Aquilino Martin L. Pimentel, said in a statement, dated Dec. 9.

The National Expenditure Program (NEP), however, slashed the agency’s budget to P53.13 billion, while the Senate approved General Appropriations Bill (GAB) for 2025 provided an even lower funding of P47 billion for indirect contributors.

“It harms the whole membership; not only does this degrade the membership of indirect contributors, but it also makes the direct contributors, majority of whom are from the working class, bear a much heavier burden of providing the financial risk protection of all,” the statement read.

It was signed by Mr. Pimentel, former Finance Undersecretary Secretary Cielo D. Magno, Sentro ng mga Nagkakaisa at Progresibong Manggagawa, Philippine Medical Association, and Public Services Labor Independent Confederation Foundation, Inc. among others.

The group consists of the same petitioners that asked the Supreme Court to declare the transfer of P90-billion PhilHealth funds to the national government unconstitutional.

They argued that defunding PhilHealth would worsen its financial crisis, citing the agency’s financial statement which revealed it does not have “excess” funds. This means it has limited sources to fund future liabilities, which include new benefits and programs such as the Konsulta program.

The group said it would file a case before the Supreme Court challenging the budget cut if lawmakers decide not to restore the funding since it is illegal.

Senators Joseph Victor G. Ejercito and Ana Theresia N. Hontiveros-Baraquel did not immediately reply to separate Viber messages seeking comment.

The Senate’s final version of the 2025 spending plan cut PhilHealth’s budget to P64.42 billion from P74.43 billion as proposed in the counterpart House bill, based on a copy sent to reporters on Wednesday.

Lawmakers are set to finalize and ratify the Bicameral Conference Committee Report of the 2025 P6.352-trillion national budget this week.

The Department of Health is allocated a budget of P285.51 billion next year, higher than the P217.38 billion under the NEP proposed by the Budget department.

By slashing budgetary support for premiums of indirect contributors, the government is neglecting its duty under the Universal Health Act to cover the premiums of poor Filipinos.

Under the Sin Tax Law, 80% of half of the total revenue from tobacco and sweetened shall be earmarked to PhilHealth to implement the Universal Healthcare (UHC) Act.

For 2025, the Sin Tax Law earmarks funds for PhilHealth worth P69.81 billion next year.

The group noted that the P53.13-billion and P47-billion proposed funding, under the NEP and the Senate’s GAB not only “fall way below the budget of P150.92 billion that PhilHealth requested, they also violate what PhilHealth should be getting from the Sin Tax Law earmarking.”

Moreover, the group flagged the insertion of a provision that would bypass health technology assessment, which it considered “unconstitutional.”

“We oppose any attempt to insert a Special Provision in the Medical Assistance to Indigent and Financially-Incapacitated Patients (MAIFIP) budget that will allow the purchase of medicines not approved by HTAC and not included in the Philippine National Drug Formulary,” the group said, noting it violates Section 34 of the UHC Act, which mandates the determination of entitlements to undergo the HTAC process.

“We believe that it is unconstitutional for Congress to use the appropriations law as a vehicle for changing the Sin Tax Laws and Universal Healthcare Act. Congress is inserting these riders, amending, and weakening laws that guarantee our health, and doing so through the backdoor.” — John Victor D. Ordoñez