DOH assures PhilHealth to maintain services without subsidy

WITHOUT any subsidy budget allocation, the Philippine Health Insurance Corporation (PhilHealth) will continue to provide health benefits to all its members.

This is the assurance given by the Department of Health (DOH), saying PhilHealth’s operations will not be affected by lawmakers’ decision to significantly reduce the agency’s grant funds.

“PhilHealth’s job is to pay for the health benefits of its members, with or without subsidy from the General Appropriations Act,” Health Secretary Teodoro Herbosa said in a statement.

“All of its inpatient, outpatient and special benefit programs will continue to be available,” he added.

The concurrent chairman of the PhilHealth board made the statement after reviewing the financial statements of the state health insurer.

“The DOH is confident that PhilHealth has the liquidity to continue and even improve benefit delivery over the next two to three years,” Herbosa said.

It was noted that PhilHealth’s total expenditure on benefits in 2023 stood at P74 billion, while its accumulated net income was recorded at P463.7 billion.

From January 1 to September 30, 2024, the agency’s expenditure on services reached 135 billion pesos.

The DOH also noted that PhilHealth has already secured a reserve fund of P280.6 billion, sufficient for two years of benefits and other operating expenses.

PhilHealth also took into account its excess fund balance, which is estimated to be at least P183.1 billion as of early 2024.

Earlier, the bicameral conference committee reduced PhilHealth’s budgetary allocation by eliminating its subsidies.

Subsidies from PhilHealth are used to cover the premiums of indirect contributors, such as the poor, the elderly and the unemployed. (HDT/SunStar Philippines)