The bicameral conference committee has approved an additional P16.52 billion in the 2026 national budget to fully cover the Sin Tax earmarking for the Philippine Health Insurance Corporation (PhilHealth).
Earlier, Senator Pia Cayetano called for the correction of what she described as a “clear funding shortfall.”
Under the Sin Tax law, PhilHealth is entitled to P69.78 billion in earmarked revenues for 2026.
However, only P53.26 billion was initially included in the National Expenditure Program (NEP), leaving a P16.52 billion deficit. Cayetano flagged the discrepancy at the start of budget hearings, reiterated it during plenary deliberations, and pushed for its inclusion during bicameral discussions.
“The Sin Tax law is unequivocal. These revenues are earmarked for health. The full amount of P69.78 billion should have been included in the NEP,” she said. “By including the P16.52 billion, Congress is simply doing its job.”
The lady senator stressed that addressing the shortfall was a matter of legal compliance and essential to sustaining universal health care. She warned that failure to fund the full amount due for 2026 would have weakened the foundation of the country’s health system.
“Let me be clear: this only covers what is due for 2026,” Cayetano added. “The earmarked sin tax amounts for previous years are still due.”
She said the bicam-approved allocation would help strengthen PhilHealth’s financial integrity and ensure the continuity of benefits, including the zero balance billing policy that aims to reduce out-of-pocket expenses for Filipinos.
“It won’t be enough,” she noted, “but if the rest of the sin tax collections are fully turned over, we will move closer to our aspiration of universal health care for all.”
Calling the move an affirmation of legislative accountability, Cayetano concluded, “We send a clear message that we will fund health as mandated, and we will protect the people’s right to health care.”