Department of Finance (DoF) Secretary Ralph Recto said he expects the Philippine Health Insurance Corporation (PhilHealth) to receive P53.26 billion in government subsidies next year in support of President Ferdinand Marcos Jr.’s priority goals.

“The DoH (Department of Health) budget will also be increased. Education and health will be the priorities of the president,” Recto said in a recent meeting with the media.

The projected subsidy for next year is much higher than the zero subsidy approved by lawmakers and supported by Marcos under the 2025 General Appropriations Act.

To recall, they had argued that PhilHealth should first mobilize its massive reserve funds, which Recto said amounted to P500 billion and excluded unused government subsidies worth P89.9 billion.

Reserve funds

Recto said the reserve funds alone could cover expanded benefits over two to three years.

DoF Undersecretary Maria Luwalhati Dorotan Tiuseco said PhilHealth’s ending fund balance currently stands at P348 billion.

PhilHealth president and chief executive officer Dr. Edwin Mercado, promised to reduce out-of-pocket medical expenses of patients to 25 percent from the existing 47 percent.

The insurer already increased rates of benefit packages on nearly all health conditions to 50 percent in December 2024 from 30 percent in February of the same year.

“PhilHealth will continue to expand benefits. I will effectively use my knowledge, skills, and vast experience in healthcare to ensure every Filipino receives proper and convenient medical services,” Mercado said.

Despite plans for more benefits, Recto said the members’ contribution rate will remain unchanged.

DoF criticized

Recto’s statements came after economists, businesspeople and civic groups criticized DoF for approving the gradual transfer of P89.9 billion in unused subsidies from PhilHealth to the national government despite complaints on some inefficient services from the state-owned insurer.

This resulted in the suspension of the fund transfer as ordered by the Supreme Court.

Recto said DoF only complied with the provisions of the 2025 General Appropriations Act, heeded advice from legal professionals, and exercised efficient financial management to fund health and other high-impact projects as PhilHealth keeps excess funds.