WHAT was once admired for its “check and balance,” the so-called democracy has significantly deteriorated in view of the recent developments that saw the Philippine Congress forcibly taking over the “purse” of an agency mandated to promote public health.
For one, the 1987 Constitution clearly defines the separation of powers among the pillars of government – the executive, the legislative, and the judicial branches. However, the constitutional provision embarking on the separation of powers doesn’t seem to apply under a predominantly politicized government.
Looking Back
Prior to the congressional deliberation, the Philippine Health Insurance Corporation (PhilHealth) was at the receiving end of nasty remarks over the transfer of its P60 billion unused funds to the National Treasury.
Next came P89.9 billion also in unused funds, which however was stopped by the Supreme Court in October when it issued a temporary restraining order.
According to Sen. Bong Go, in his capacity as chairman of the Senate committee on health and demography, such a transfer is uncalled for even as he cited the law which created PhilHealth.
Go stood firm that health funds should not be used for any other purposes.
National Budget
As both chambers – the Senate and the House of Representatives via the Bicameral Conference Committee, hurdled on passing the 2025 General Appropriations Bill (GAB), P6.352 trillion national budget was approved.
Now, with the 2025 GAB already approved by both legislative chambers, PhilHealth ended up being whipped by the legislative branch which decided not to give a dime to the agency. Nadah, zero-subsidy.
To some extent, there are reasons to believe that PhilHealth underperformed as manifested in its own data which shows low absorptive capacity, or its inability to dispense funds for mandated projects and programs due to systems inefficiency, sans the imperative digitization, principally in the provinces.
Biggest Loser
Taking the case of the late Ramon Angelo of Angono, he died of a curable ailment just because he couldn’t afford the cost of treatment. He was an employee of the Philippine Long Distance Company Co. (PLDT) until he retired.
Joel Larain of Pasig City also died because his family doesn’t have much left after paying rent, utility bills, and food. Both Angelo and Larain are PhilHealth members.
It only goes to show that the people are the biggest loser in what appears more like a political maneuver to get hold of the proposed P74 billion PhilHealth subsidy, for which the House of Representatives was able to double funds at their own discretion.
And to think, no less than the President himself has admitted that the people in the province wait endlessly in vain for PhilHealth assistance for their healthcare needs because the system is clogged.
From how it looks, the Philippine Congress is demolishing PhilHealth because it does not do its job well…
Compelling Figures
Under the 2025 National Expenditure Program (NEP) that was submitted to Congress in June by the Department of Budget and Management (DBM), the House of Representatives proposed P16.3 billion.
After the closed-door bicameral conference, the lower chamber emerged as the biggest winner as House leaders were able to secure twice as much – a whopping P33.7 billion.
What’s more alarming though is the amount for the so-called “unprogrammed funds. Under the DBM’s 2025 NEP, the administration proposed P158.7 billion. After the bicam convened, the amount bloated to P531.57 billion.
Thanks to PhilHealth and other vital government agencies which were made to suffer budget cuts four months away from the midterm election.
Reinvented Pork
Where would this erstwhile subsidy/budget of Philhealth go?
Naturally to the unprogrammed funds, which are disguised as priorities of local governments. In other words, patronage funds for the 2025 midterm polls or Pork Barrel 2.0.
Prof. Cielo Diaz Magno-Gatmaytan, former finance undersecretary, wrote an appeal to the senators to reconsider with a dire warning that this would further endanger the healthcare insurance system of the country – for the premium payments of the elderly, the PWD and indigents – and the working class who have been chipping in an escalating Philhealth premium (with no share from the government) in monthly contributions to the system that they have not even availed of in their lifetime.
Her appeal was ignored.
Not Much Left
In trying to justify the zero-subsidy slapped on PhilHealth, several senators claimed that the state insurer has reserve funds amounting to P600 billion.
However, what these senators failed to check are the liabilities incurred by the agency — the mounting current (and future) liabilities with hospitals dating back from the first quarter of 2020. It was during these trying times that most patients are being turned away unless they are paid by the agency in full.
Just because Philhealth members are forced to pay monthly premiums, then the agency can manage with what it can collect, a very flawed assumption.
The goal of setting up Philhealth is to reduce out of pocket expenses for healthcare of the citizenry that even with Philhealth, people still pay 50 to 60 percent for their healthcare out of their pockets.
Philhealth also requires emergency room services before it can reimburse the patient. Outpatient, laboratory, medicines and dental care are also not covered. In reality, Philhealth only shoulders 10 percent of medical bills of patients. So who really benefits?
Demolishing PhilHealth
From how it looks, the Philippine Congress is demolishing Philhealth because it does not do its job well, in which case leadership change with people who can improve the system is more appropriate than to completely remove its funding.
Remittances due to Philhealth from the Sin Tax Law, PAGCOR and PCSO are being channeled to Medical Assistance for Indigent and Financially Incapacitated Patients (MAIFIP) – where those who have less are forced to beg with politicians for funding of their healthcare, a tedious documentation process which require finding padrinos to get a bigger chunk to cover their medical expenses.
With the 2025 midterm election fast approaching, such a process translates to patronage politics, short of vote buying. Since 2023, funding for Philhealth has been decreasing while MAIFIP has been ballooning, which is hidden in the budget of the Department of Health and government hospitals.
MAIFP is absolutely not transparent, discretionary and depends on the relation of politicians to the appealing patients.
Viable Options
One recourse is to again ask the Supreme Court, come January, to declare the congressional whip as unconstitutional, particularly on the decision of both chambers not to give a dime of subsidy to PhilHealth.
Under existing laws, PhilHealth gets a slice from the government collection from the sin taxes paid for by cigarette and alcohol companies, as well as shares from revenues generated by the Philippine Charity Sweepstakes Office (PCSO and the Philippine Amusement and Gaming Corporation (PAGCOR).
Another option is the presidential veto. However, chances of reinstating PhilHealth subsidy seemed slim as no less than President Ferdinand Marcos Jr. has already made his position clear by justifying the removal of Philhealth subsidy — unless PhilHealth gets to beg on their knees and strike a compromise deal.
