PhilHealth board thumbs down purchase of 30th anniv items worth over P37.5 million

MANILA, Philippines —  The board of directors of the Philippine Health Insurance Corporation (PhilHealth) rejected the proposed procurement of over P37.5 million worth of items for the state insurer's 30th anniversary in February 2025.

In a statement on Wednesday, December 18, the Department of Health (DOH) said that the PhilHealth board found the proposal concerning and decided to cancel its procurement. 

The plan was to purchase the following items for PhilHealth’s 30th Anniversary: 

• Umbrellas - P7,910,550
• Perforated mesh stickers - P7,300,000
• Tote bags - P1,820,000
• Anniversary shirts - P3,640,000
• Marketing shirts - P1,940,000
• Jackets - P13,650,000
• Katsa bags - P750,000
• Button pins - P545,000

This amounted to a total of P37,555,550, a proposal filed under the state insurer’s marketing and promotional expenses for the event.  

According to the DOH, the PhilHealth board quickly vetoed the proposal after receiving an official copy on Monday, December 16, to “save government funds.”  

The board said financial responsibility is needed, which would mean ensuring that the state insurer fulfills its mandate of improving the benefit packages of PhilHealth members and lowering premium contributions. 

“The PhilHealth board of directors reviews and decides on proposals coming from the PhilHealth management, such as the marketing and promotional expenses for the official events of the corporation,” Health Secretary Teodoro Herbosa said in a statement

“The Board will always prioritize the benefits of PhilHealth members,” he added. Herbosa chairs the PhilHealth board as DOH’s agency head, but does not vote.

Other members of the board include the Department of Finance, Department of Budget and Management, Department of Social Welfare and Development and Department of Labor. It is also composed of three expert panel members and four sectoral members. 

DOH clarified that the PhilHealth Board is separate from the state insurer’s executive officers. 

PhilHealth was also criticized for requesting permission to spend P138 million for its anniversary’s nationwide activities. 

Congress also refused to allocate government funds for the state insurer in 2025, arguing that it has more than enough reserve funds — around P500 billion — to operate and fulfill its mandate.   

Considering this, the board said on Tuesday, December 17, that PhilHealth will operate on a P284-billion corporate operating budget. It also assured that this will cover the payment and improvement of PhilHealth benefits.  

While civil society has clamored for government funding, worried that the zero budget will result in higher premium rates, PhilHealth promised to House lawmakers on Tuesday that they will lower contribution rates on top of expanding benefit packages.