Health spending hits P1.44T, up 19% in 2024

The Philippine Statistics Authority reported on Thursday that health spending as a percentage of the economy rose to 5.9% in 2024, marking its highest level in three years.

This increase was driven by higher household incomes, improved employment conditions, and rising costs of medical goods and services; however, government funding for healthcare still accounted for less than half of total health expenditures, according to PSA data.

Health expenditures rose nearly 19% to P1.44 trillion in 2024, with government schemes accounting for 44.7%, households contributing 42.7%, and voluntary healthcare schemes making up 12.6% of the total expenditure.

Despite a significant rise in government health spending by 29.5 percent to P643.12 billion, out-of-pocket expenses for Filipinos increased by 11.8 percent to P615.16 billion, still far from PhilHealth's goal to reduce such payments to 25-35% within the next three years.

Experts like Cielo Magno and Filomeno Sta. Ana III argue that PhilHealth needs more sustainable funding to meet its goals and improve coverage for Filipinos, while health advocates are questioning the government’s zero subsidy allocation for PhilHealth in 2025.