The Department of Finance said the Philippine Health Insurance Corp. (PhilHealth), bolstered by rising earnings and continued government subsidies, will have ample funds to cover new benefits this year, even after the government transfers excess funds.
Finance Secretary Ralph Recto said in a radio interview Sunday that the use of PhilHealth’s “sleeping funds” would not compromise member benefits or hinder plans to expand coverage this year.
Recto said PhilHealth benefit packages would increase by more than 30 percent, with the breast cancer package rising to P1.4 million from P100,000.
“PhilHealth benefits will increase, and even with this increase, PhilHealth’s income remains substantial,” Recto said. “The funds we’re taking are not from member contributions but from government subsidies. In fact, the government will provide another P70 billion to PhilHealth next year. It’s more than enough to increase benefits.”
Recto said PhilHealth has over half a trillion pesos in reserves, enough to cover two to three years of expenses. “By the end of this year, PhilHealth’s fund will reach P550 billion. Even for two or three years, that fund is sufficient,” said the former legislator and author of the Universal Health Care law.
Recto said PhilHealth’s net income is projected to reach P61 billion by the end of 2024. The agency’s income has grown steadily since 2019, from P4 billion to P173 billion last year.
He said of the initial P20 billion transferred from PhilHealth’s excess funds, P20 billion was used for health emergency allowances of frontliners. Another P20 billion would be transferred on Aug. 21 to fund key infrastructure, health and education programs.
Recto said using these untapped funds is preferable to borrowing, which incurs additional interest. The government currently borrows P4 billion daily to cover operational expenses, he said.
“I don’t want to increase our debt,” Recto said. “We also don’t want to increase taxes. It’s better to use these idle funds that we’re still paying interest on. It’s a waste if they’re just sitting there.”
Mobilizing these funds, he said, would stimulate the economy, reduce the debt burden and alleviate poverty.
