PhilHealth to get P53.2 billion subsidy in 2026 budget

MANILA, Philippines — The government is set to restore the subsidy for the Philippine Health Insurance Corp. (PhilHealth) next year, with P53.2 billion earmarked under the proposed 2026 national budget, the Department of Finance (DOF) said Wednesday.

Finance Secretary Ralph Recto confirmed the allocation, saying the administration is ramping up efforts to improve health services through both the Department of Health (DOH) and PhilHealth.

“For 2026, there’s a subsidy for PhilHealth,” Recto said in a media interview. “We’re putting more focus on improving health services, not just PhilHealth but also the DOH.”

DOF Undersecretary Maria Luwalhati Dorotan-Tiuseco said the subsidy would supplement PhilHealth’s existing funds, with the state health insurer expected to have an ending balance of around P348 billion by the end of 2025.

“It’s only to supplement PhilHealth’s funds. Their ending balance for 2025 is still large, about P348 billion, and it will also be significant next year,” she said.

Recto said the subsidy is intended to support an increase of 30 to 50 percent in PhilHealth’s benefit packages, broadening coverage and enhancing service delivery across the country.

No subsidy was allotted to PhilHealth under the 2025 budget after the bicameral conference committee decided to scrap the agency’s proposed P74 billion allocation, citing its sizable reserves and the need for better fund utilization.

Despite the restored funding in 2026, Recto clarified that there will be no increase in PhilHealth contribution rates. “There will be no hike in contributions. PhilHealth’s funds are sufficient.”

PhilHealth president Edwin Mercado echoed Recto’s remarks, saying member contribution rates are fixed under the Universal Health Care Law, noting that the agency continues to improve collection efficiency to compensate for reduced government support.

However, Mercado acknowledged that the agency still requires additional funds to cover benefit payouts next year.

While the proposed 2026 National Expenditure Program (NEP) has yet to be released, Recto emphasized that investments in human resource development, including health workers, will remain a key priority for the Marcos administration.

The NEP is expected to be submitted to Congress within 30 days after President Marcos’ State of the Nation Address later this month.

OVP budget

Meanwhile, Malacañang said yesterday that the Marcos administration is not preventing the office of Vice President Sara Duterte from seeking a higher budget, but stressed that it should be able to justify its proposed outlay before Congress.

Ruth Castelo, Duterte’s spokesperson, told reporters on Wednesday that the Vice President is not just a “spare tire” and that it would be a “disservice” to the country if the second highest official of the land is kept out of the loop or not given funds for her projects and programs.

Castelo added that the Vice President “should be as prepared as the President should anything happen to him.”

Asked to comment on Castelo’s statements, Presidential Communications Undersecretary Claire Castro said the administration would welcome good suggestions coming from the Office of the Vice President (OVP).

“The President is not closing the door on the Vice President. All meaningful suggestions will be accepted if it would help the country,” the Palace press officer said.

Castro maintained that Marcos is not hindering Duterte from doing what she wants to do for the nation, but noted that the Vice President had refused to share what she had claimed to be a formula for lowering rice prices because she did not want to help the President.

With regard to the OVP’s budget, Castro said the budget department has approved an increase in its proposed outlay for 2026 from P733 million to P903 million.

“This administration is not blocking its (OVP) request for a higher budget,” she said in Filipino.

Castro pointed out that the OVP had proposed a P2.03-billion budget for this year, but it was not able to justify the outlay properly at the House of Representatives.

“Whatever is the decision of the House of Representatives, of Congress, it is not within the purview of the President,” Castro said. “If it (OVP) wants a higher budget, like a student defending a thesis, it should defend the proposal properly so it can be granted.”

SONA wish list

Reelected La Union Rep. Paolo Ortega V is hoping the President’s upcoming State of the Nation Address will focus more on programs for tourism, agriculture, infrastructure, education and health – especially those that matter to the communities in his home province, a major tourism hub in the North.

“I’m taking an approach from my district. You know that I am from La Union, I’m from the North. I’m from Region 1,” said Ortega, one of the leaders of the House Young Guns. “I want to see some of their plans for tourism, infrastructure, agriculture, education and health.”

Ortega, deputy majority leader of the recently concluded 19th Congress, said the tourism boom in La Union, a top beach and surf destination in the country, has helped drive provincial growth.

He hopes the administration would outline new strategies to sustain that momentum. – Alexis Romero, Jose Rodel Clapano

Reelected La Union Rep. Paolo Ortega V is hoping the President’s upcoming State of the Nation Address will focus more on programs for tourism, agriculture, infrastructure, education and health – especially those that matter to the communities in his home province, a major tourism hub in the North.

“I’m taking an approach from my district. You know that I am from La Union, I’m from the North. I’m from Region 1,” said Ortega, one of the leaders of the House Young Guns. “I want to see some of their plans for tourism, infrastructure, agriculture, education and health.”

Ortega, deputy majority leader of the recently concluded 19th Congress, said the tourism boom in La Union, a top beach and surf destination in the country, has helped drive provincial growth.

He hopes the administration would outline new strategies to sustain that momentum. – Alexis Romero, Jose Rodel Clapano