MANILA, Philippines — The board of the Philippine Health Insurance Corporation, led by Health Secretary Teodoro Herbosa, approved a P284 billion corporate operating budget for 2025 amid a cut in its subsidy in the 2025 General Appropriations Act.
The 2025 corporate budget is 10 percent higher than the previous year’s P259 billion corporate budget this year.
In a statement, Health Assistant Secretary and Spokesman Albert Domingo also said that the PhiHealth board has also approved the second round of increases in selected case rates endorsed by the Benefits Committee by as much as 50 percent, as well as the emergency care benefit, glasses and optometric services for children, open-heart surgery benefits, and pediatric cataract extractions.
Domingo added that the PhilHealth corporate budget has factored in the zero-premium subsidy for indirect contributors for 2025 as decided by the Bicameral Conference Committee.
“It includes computations by PhilHealth Management of a P150 billion surplus as of October 31, 2024. The formula used is accumulated net income (also known as accumulated revenues) over the years of
P431 billion, minus the Reserve Fund ceiling of P281 billion,” Domingo said.
Herbosa said that PhilHealth has surplus money well over the reserve fund ceiling allowed by law due to underspending on benefits through the years.
“The Board approved higher benefits and a budget for 2025 that recognizes the need for PhilHealth to spend more so that families will spend less,” Herbosa said.
