The return of P60 billion in unutilized funds to the Philippine Health Insurance Corp. (PhilHealth) strikes a balance between fiscal discipline and delivering stronger health benefits for Filipino families, according to the Department of Finance (DOF).
The DOF said the restoration of the funds—which were initially swept to bankroll urgent government projects—has allowed for the expansion of PhilHealth’s benefit packages, illustrating how fiscal rules and improved health services can be aligned.
The return order followed the DOF’s earlier recommendation to the President, citing PhilHealth’s improved revenue performance and expanded service obligations. The DOF said the restoration was also made possible by fiscal space created from the termination and suspension of select flood control projects, which freed up resources for more urgent health concerns.
The funds had been swept from PhilHealth under the 2024 General Appropriations Act (GAA), which directed the DOF to gather idle and unused balances of government-owned and controlled corporations (GOCCs), including PhilHealth. The DOF implemented the mandate with clearance from the Office of the Solicitor General (OSG), Office of the Government Corporate Counsel (OGCC), Governance Commission for GOCCs (GCG), and Commission on Audit (COA).
The P60 billion swept from PhilHealth was initially channeled into urgent health programs, according to the DOF, including P27.45 billion paid the long-delayed Health Emergency Allowances of COVID-19 frontliners; P10 billion for the Medical Assistance to Indigent and Financially Incapacitated Patients (MAIP); P4.10 billion for vital medical equipment for DOH and local government unit (LGU) hospitals; P3.37 billion for three new DOH health facilities; and P1.69 billion for the Health Facilities Enhancement Program.
Around P13 billion served as counterpart financing for foreign-assisted infrastructure and projects related to the social determinants of health, such as food security and rural health access.
The DOF said the restoration of the P60 billion is not just a fiscal exercise but directly translates into stronger services for members.
The restored funds will allow PhilHealth to meet its Zero Balance Billing (ZBB) commitments, which ensure that patients no longer shoulder out-of-pocket expenses in accredited hospitals. The process also triggered a review of PhilHealth’s coverage packages, leading to upward adjustments in benefit rates across major illnesses and procedures.
For example, the breast cancer package rose from P100,000 to P1.4 million, an increase of 1,300 percent. Patients can now avail of free dialysis sessions and medicines for one year. The ceiling for peritoneal dialysis was raised from P270,000 to P1.27 million, and kidney transplant reimbursements increased from P600,000 to P2.1 million.
Coronary artery bypass reimbursements rose from P550,000 to P960,000, and valve replacement is now covered up to P825,000.
Coverage for severe dengue hospitalization increased from P16,000 to P47,000, neonatal sepsis from P11,700 to P25,793, and asthma from P9,000 to P22,488.
