Health care spending rises to P1.87 trillion

MANILA, Philippines — Health care spending in the country rose by 15 percent in 2025, as Filipinos are placing more importance on taking care of their health.

Data released by the Philippine Statistics Authority (PSA) showed that the country’s total health expenditure, at current prices, went up to P1.87 trillion last year from P1.63 trillion in 2024.

Total health care spending accounted for 6.7 percent of the country’s gross domestic product last year, also higher than the 6.2 percent share in 2024.

PSA data also showed that every Filipino spent an average of P15,223 on health care last year, 14 percent higher than the P13,356 spent in 2024.

“The rise in health care spending may be attributed to Filipinos’ increased awareness of health and wellness, along with gains in purchasing power and willingness to spend on this segment,” University of Asia and the Pacific economist Marco Antonio Agonia said in an email.

Of the total, current health expenditure or the amount spent on health care goods and services including pharmaceuticals, accounted for 92.5 percent or P1.73 trillion. This was up by 15 percent from P1.51 trillion in 2024.

Meanwhile, health capital formation expenditure or investments on infrastructure and machinery and equipment by health providers, had a 7.5 percent share or P140.52 billion. This is 17 percent higher compared to the P120.37 billion in 2024.

Of the current health expenditure, government schemes and compulsory contributory health care financing had the largest share at 46.5 percent amounting to P805.57 billion.

Household-out-of-pocket payment expenditure came next with a 41.2 percent share or P714.63 billion.

Voluntary health care payment schemes contributed 12.3 percent or P213.17 billion.

Agonia said that health care spending is expected to increase in the future, driven by changes in consumer preferences.

“A potential risk in this current breakdown is the large incidence of out-of-pocket health spending, which points to structural health care system vulnerabilities and highlights the growing need for better institutional healthcare systems,” he said.