Finance Secretary Ralph Recto announced that the Philippine Health Insurance Corp. (PhilHealth) will receive a subsidy of more than PHP50 billion from the national government next year.

Recto’s announcement triggered speculations that the Marcos administration has decided to put money into Philhealth coffers to avoid another law suit.

A Supreme Court petition is currently pending for the return to Philhealth of over PhP30 billion in unused funds that was transferred to government.

In a recent informal press briefing, Recto said that a total of PHP53.26 billion has been allocated to PhilHealth for 2025 to strengthen its benefit packages without requiring an increase in members’ premium contributions.

“No plans for additional contributions. PhilHealth already has sufficient funds,” Recto said.

Citing data from the Department of Finance (DOF), he noted that PhilHealth is expected to close 2025 with a fund balance of PHP348 billion, even with the expansion of member benefits.

According to Recto, the subsidy will support a 30 to 50 percent increase in benefit packages.
“That should already result in a significant improvement in PhilHealth services,” he added.

Recto, however, stressed that the lack of hospitals in provincial areas remains a challenge.
“Ang problema natin, kulang ang ospital in the provinces. But we will definitely improve the services of all DOH-run hospitals this year and next year,” he said.

The finance chief emphasized that health and education continue to be key priorities of President Ferdinand R. Marcos Jr.’s administration.