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Manila Bulletin devider Business devider Banking & Finance devider PhilHealth gets ₱53.3-billion subsidy in 2026 after year of zero support

PhilHealth gets ₱53.3-billion subsidy in 2026 after year of zero support

Published Jul 17, 2025 09:39 pm
After receiving zero subsidies this year, the Philippine Health Insurance Corporation (PhillHealth) will be getting ₱53.3 billion in government support next year, according to President Ferdinand Marcos Jr.’s chief economic manager.
Department of Finance (DOF) Secretary Ralph G. Recto told reporters during an informal press chat on Thursday, July 17, 2025, that the government will resume its subsidies for the state health insurer.
Meanwhile, Recto said that there are “no plans for additional contributions” because “there’s so much money with PhilHealth.”
For this year, PhilHealth’s ending fund balance is ₱348 billion, according to Finance Undersecretary Maria Luwalhati C. Dorotan-Tiuseco.
Recto noted that the Department of Health (DOH) budget will also be increased, adding that among the priorities of the Marcos administration are social services, specifically health and education.
“That’s already a 30-percent increase in benefit packages. That’s a 50-percent increase in benefit packages. The benefit packages in PhilHealth were supposed to be a major improvement,” Recto told reporters.
“The problem we’re facing is the lack of hospitals in the provinces. But we will definitely improve the services of all DOH-run hospitals within this year and the next,” Recto said.
“It’s possible that the zero balance billing policy will fully take effect, including in specialty hospitals,” he added.
To recall, PhilHealth received zero subsidy this year but remains operational through its retained earnings and surplus funds.
Last month, the state health insurer was directed by the Governance Commission for Government-owned and Controlled Corporations (GCG) to restructure in order to improve the agency’s outdated workforce, fragmented data, and issues related to strategy execution and benefits claims.
While PhilHealth was given a year to revamp, the total process will take two to three years, according to PhilHealth President and CEO Edwin Mercado. Among the major changes in the restructuring is the updated organizational structure covering 503 units and 7,149 positions.

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Department of Finance (DOF) Finance Secretary Ralph G. Recto Philippine Health Insurance Corp. (PhilHealth)
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