Government Use Of PhilHealth Funds Will Not Affect Benefit Plans --- Recto

Finance Secretary Ralph G. Recto assured the public that the use of the Philippine Health Insurance Corporation (PhilHealth)’s idle funds for government priority programs will not negatively impact its members or its plans to expand benefit packages this year.

Recto reiterated that the funds being utilized come from unused government subsidies, not from member contributions. I Photo: Festive Walk Iloilo Facebook

Recto emphasized that the Department of Finance's (DOF) move aligns with the medical principle of "Do no harm" and will not affect PhilHealth’s daily operations or its members' contributions.

He reiterated that the funds being utilized come from unused government subsidies, not from member contributions.

Even after transferring PHP89.9 billion in unused subsidies to the National Treasury, PhilHealth remains financially robust, with PHP550 billion in its coffers—more than sufficient to cover the increased benefits planned for its contributors over the next two to three years.

Recto announced that benefit packages for PhilHealth members will increase by over 30% this year, including a significant boost in coverage for severe illnesses like breast cancer.

By the end of 2024, PhilHealth is projected to have a net income of PHP61.18 billion, with income steadily increasing since 2019.

Additionally, PhilHealth will receive another PHP70 billion in government subsidies next year.

The DOF's initiative to reallocate idle funds from government-owned and controlled corporations (GOCCs) is part of a broader strategy under the General Appropriations Act (GAA) of 2024 to fund Unprogrammed Appropriations.

The initial remittance of PHP20 billion from PhilHealth was used to cover health emergency allowances for frontliners, and the remaining funds will support various public projects aimed at boosting economic growth and reducing poverty.