MANILA – The Philippine Health Insurance Corporation (PhilHealth) is in a financially sound position, with ample reserves and a significant surplus, according to its President and CEO, Emmanuel Ledesma Jr. During a session with lawmakers, Ledesma emphasized that despite areas requiring attention, PhilHealth remains a robust entity capable of sustaining its operations without additional government funding.
In the proposed 2025 national budget, the bicameral conference committee decided against allocating any subsidies to PhilHealth, citing the corporation’s substantial reserves and investible funds. As of October 2024, PhilHealth reported a surplus of PHP150 billion and total reserves amounting to PHP280 billion. By November 2024, its investment fund was nearing PHP490 billion.
Ledesma highlighted that these figures underscore PhilHealth’s financial strength, enabling it to meet the healthcare needs of its 115 million members. He announced plans to increase coverage for most case rate packages by 50 percent, aiming for an overall increase of 80 percent by year’s end. These adjustments are intended to ensure fair compensation for expensive treatments and alleviate financial pressures on patients and healthcare providers.
Despite its current financial health, PhilHealth has faced challenges in recent years, including leadership instability and issues with public trust. Ledesma acknowledged past shortcomings, particularly during the previous administration, which saw frequent CEO changes and delayed reforms. To address these issues, he outlined three key initiatives: strengthening governance to protect funds, enhancing benefit delivery, and adopting digitalization to streamline processes and combat fraud.
Ledesma assured that PhilHealth would continue to expand benefits despite the lack of government subsidies in the current budget. He emphasized that the corporation’s financial stability allows it to fulfill its obligations and provide benefits to both direct and indirect contributors. He reassured the public that all benefits, including those for the most vulnerable members, would be covered in 2024.
Lanao del Sur Representative Zia Alonto Adiong, the House Assistant Majority Leader, supported Ledesma’s claims, stating that PhilHealth has sufficient funds to meet Filipinos’ health needs for the next two years. He refuted social media rumors suggesting otherwise, noting that PhilHealth’s reserves exceed the statutory requirement of maintaining a reserve fund equivalent to two years’ worth of average benefit payments, estimated at PHP280 billion by the Department of Finance. Adiong added that even without government premium subsidies, annual collections from direct members are enough to cover the average benefit spending of PHP140 billion.