PRESIDENT Ferdinand “Bongbong” R. Marcos Jr. on Monday justified the decision to remove the Philippine Health Insurance Corporation’s (PhilHealth) P74-billion subsidy from the 2025 national budget, emphasizing the agency’s ample financial reserves.
In a chance interview at Malacañang, Marcos explained that even without the subsidy, PhilHealth still has a reserve fund amounting to P500 billion.
“The reason we do not want to subsidize PhilHealth is simple: the subsidy will only sit in its bank account and won’t be utilized effectively. We have many other priorities where those funds can be used,” Marcos stated.
PhilHealth was initially allocated P74.431 billion for 2025, later reduced by the Senate to P64.419 billion, before the bicameral conference committee decided to remove the allocation entirely.
Addressing PhilHealth’s Operational Issues
Marcos highlighted operational inefficiencies within PhilHealth, particularly its limited capacity to process claims promptly despite introducing new services and payment schemes.
“With all the new services and payments PhilHealth is offering, the system gets clogged,” he noted. “In provinces, you’ll see people waiting all day—200 people in line trying to claim. It’s not complicated, but that’s what happens. The problem lies in PhilHealth’s processing capabilities.”
To address these challenges, Marcos emphasized PhilHealth’s ongoing digitization efforts. He expressed confidence that automating processes would enhance the speed and efficiency of claims processing while ensuring broader insurance coverage.
Clarification on Budget Approval
Marcos also clarified that he has not yet reached the point of vetoing specific items in the bicameral conference-approved 2025 budget, leaving room for potential adjustments.
The President’s remarks underline the administration’s priority to allocate public funds efficiently while pushing for systemic reforms in PhilHealth to better serve its members.