House leaders criticized the Philippine Health Insurance Corporation (PhilHealth) for prioritizing investments over healthcare services and called for immediate premium reductions and reforms to benefit its millions of members.
The criticisms emerged during a hearing of the House Committee on Good Government and Public Accountability, or the Blue Ribbon Committee, where lawmakers scrutinized PhilHealth’s ballooning funds, prompting Congress to propose zero subsidy for the agency under the P6.53-trillion national budget for 2025.
PhilHealth President Emmanuel Ledesma Jr. reported that as of October 2024, the agency holds a P150 billion surplus, P281 billion in reserves, and an investment portfolio nearing P489 billion. Ledesma cited PhilHealth’s financial stability and announced plans for a 50 percent increase in coverage for most case rate packages.
Despite these figures, lawmakers argued that PhilHealth’s growing reserves and investments have not translated into significant relief for Filipino families burdened with rising healthcare costs.
Manila Rep. Joel Chua, chair of the Blue Ribbon Committee, raised concerns over unused government subsidies being diverted to investments rather than directly funding healthcare.
PhilHealth Chief Financial Officer Renato Limsiaco admitted that surplus funds, after covering benefit payments, are directed into investments. Chua stressed that healthcare services must remain PhilHealth’s priority.
House Assistant Majority Leader and Ako Bicol Party-list Rep. Jil Bongalon cited Republic Act (RA) 10606 or the National Health Insurance Act, which requires PhilHealth to use excess reserve funds to expand benefits and lower premium contributions. Bongalon challenged PhilHealth to fulfill both mandates.
Marikina Rep. Stella Quimbo confronted Ledesma for repeatedly ignoring her calls to reduce premiums, especially for minimum wage earners. Quimbo noted she had even filed a resolution calling for a moratorium on contributions for minimum wage earners.
Antipolo City Rep. Romeo Acop questioned PhilHealth’s increasing investment income, which surged from P11.5 billion in 2022 to P20.7 billion in 2023. Acop also cited PhilHealth’s rising investments in time deposits and government bonds. Kabataan Party-list Rep. Raoul Manuel warned that PhilHealth’s focus on investments comes at the expense of its members.
Senator Joseph Victor Ejercito meanwhile renewed his call for the creation of a Joint Congressional Oversight Committee on Universal Health Care (UHC) to evaluate the implementation of the landmark UHC Act and address gaps in the country’s healthcare system.
Ejercito raised this proposal during a Senate Committee on Health and Demography hearing, where he stressed the importance of closely monitoring the progress of the UHC Act, as mandated under Section 39 of the law, to ensure its objectives are being met.
The senator underscored the role of the PhilHealth as the primary agency tasked with delivering individual-based health services under the UHC framework.
The UHC Act aims to reduce out-of-pocket medical expenses for Filipinos and ensure equitable access to healthcare.
Senator Christopher Lawrence Go echoed Ejercito’s sentiments, adding that public awareness about the UHC Act’s implementation is equally vital. “I agree with Senator JV—we need an oversight committee,” he said.
