The Philippine Health Insurance Corporation (PhilHealth) has finalized a P284 billion budget for the fiscal year 2025, marking a 10% increase from the previous year’s P259 billion, as announced by the Department of Health (DOH). This budget, akin to a national or local government’s appropriations act, accounts for the absence of government premium subsidies for indirect contributors in 2025 and includes a projected surplus of P150 billion as of October 31.
In a move to enhance healthcare services, the PhilHealth Board has also approved a 50% increase in selected case rates, alongside new benefits such as emergency care, pediatric eye care, and open heart surgery. DOH Secretary Teodoro Herbosa emphasized that the surplus, which exceeds legal reserve limits, stems from years of underspending on benefits, leading to high out-of-pocket expenses for Filipino families. The new budget aims to alleviate this burden by increasing PhilHealth’s spending.
The PhilHealth Board, chaired by Herbosa and comprising various government officials and sectoral representatives, operates independently from the corporation’s executive team, led by President and CEO Emmanuel Ledesma Jr. and Executive Vice President and COO Eli Diño Santos.
Of the 2025 budget, P271 billion is allocated for benefit expenses, an 11% rise from the previous year, covering increased case rates, Z benefits, PhilHealth Konsulta, and hemodialysis sessions. Additional funds are set aside for emergency care, mental health, malnutrition treatment, and other outpatient services.
Administrative costs will see a modest 3% increase to P12.5 billion, while capital expenditures are drastically cut by 91% to P259 million. Despite not approving a new ICT budget for 2025, the Board has extended the validity of P989 million from the 2024 budget to continue digitalization efforts.