PhilHealth’s PHP150 Billion Surplus to Cover Subsidy for Indirect Members in 2025

MANILA – Health Secretary Teodoro Herbosa announced that the Philippine Health Insurance Corporation (PhilHealth) has a PHP150 billion surplus from its 2024 budget, which will be used to support indirect members’ subsidies in 2025. This statement comes as PhilHealth anticipates receiving no government subsidy in the upcoming year. Herbosa, who also serves as the chairperson of the PhilHealth Board of Directors, emphasized that the organization’s budget for 2025 is set at PHP284 billion, refuting claims of insufficient funds. He detailed the budget breakdown, which includes PHP271 billion for benefit expenses, PHP12 billion for administrative costs, and PHP0.3 billion for capital outlay. During discussions on the 2025 General Appropriations Bill, Senate Finance Committee chairperson Grace Poe highlighted that PhilHealth holds PHP600 billion in reserve funds, suggesting these should be utilized rather than left idle. Herbosa noted that only 63 percent of the government’s allocation for PhilHealth benefits in 2024 was used, resulting in the significant surplus. He criticized the low utilization rate and questioned the logic of requesting more funds when existing resources are not fully utilized. The PHP150 billion surplus exceeds the PHP74 billion subsidy PhilHealth had requested for its indirect contributors, which amounts to PHP5,000 per member for 16 million indirect members, totaling PHP80 billion. Herbosa challenged the idea of keeping such a large surplus in the bank rather than using it to meet current needs.