Marcos defends PhilHealth subsidy cut, experts warn

Philippine President Ferdinand R. Marcos Jr. defended removing the government subsidy for PhilHealth in the proposed 2025 national budget, citing the corporation's P500-billion reserve fund and its efficiency in providing services to members.

Despite this, financial experts like University of the Philippines Los Baños Senior Lecturer Enrico Villanueva warned that PhilHealth's fiscal health is deteriorating due to negative reserves and mismanagement.

PhilHealth president Emmanuel Ledesma Jr. assured Monday that the corporation will continue to pay for health benefits even without government subsidy, citing PHP281 billion in reserves and PHP150 billion in surplus funds as of October 2024.

Dr. Israel Francis Pargas, PhilHealth Senior Vice President for Health Finance Policy Sector, said Tuesday that they respect the decision of the bicameral conference committee and the President, and will adjust accordingly if the zero-subsidy decision is approved.

PhilHealth still has sufficient funds to continue supporting beneficiaries, with a PHP150 billion surplus from its 2024 budget, Health Secretary Ted Herbosa said.