Cayetano urges PhilHealth to spend fund wisely amid zero subsidy

Sen. Pia Cayetano and Transportation Secretary Vince Dizon answer questions from the media before a meeting led by Governor Gwen Garcia on Saturday at the Capitol. | Photo by Niña Mae Oliverio

CEBU CITY, Philippines — Senator and reelectionist Pia Cayetano has expressed concern over the Philippine Health Insurance Corporation (PhilHealth) and its financial management issues, which could impact its beneficiaries.

Cayetano, a strong advocate for women’s rights and healthcare, emphasized that PhilHealth’s funds should be used to benefit the people.

She visited Barangay Paknaan in Mandaue City, Cebu, on Saturday, March 8, to meet with members of the United Women Organization of Paknaan (UWOP) in celebration of International Women’s Day and for a campaign sortie.

“PhilHealth, daghan ang kwarta sa PhilHealth. Ako ang in-charge sa budget sa PhilHealth. Kada tuig, nag-hatag ko budget, ambot sa PhilHealth kung naa ang ginhatag nila, ang pundo nila, gin balik nila sa Treasury. Kasalanan ng PhilHealth na kay kinahanglan,” Cayetano said.

(PhilHealth has a lot of funds. I am in charge of its budget. Every year, I allocate a budget, but PhilHealth keeps returning unused funds to the Treasury. That’s PhilHealth’s fault because those funds are necessary)

“For example, mga nanay, naa ka kita. Tapos ang asawa nyo, naa din kita. So ang pundo niyo, buo. Tapos hindi mo gamitin para sa anak, hindi mo gamitin para sa eskwela ng anak, hindi sa pagkaon, ginhatag mo sa iba. Mali yun di ba? Kinahanglan na gamitin sa purpose. Ang purpose ng pundo ninyo sa bahay is para sa pamilya. Ang purpose ng pundo sa PhilHealth para sa tao,” she added.

(For example, as a mother, if both you and your husband are earning, your household budget should be intact. But if you don’t use that money for your child’s education or food and instead give it away, that would be wrong, right? Funds must be used for their intended purpose. The purpose of your household budget is for your family, just as PhilHealth’s budget is meant for the people)

Due to PhilHealth’s budget controversy, the government has not allocated any subsidy for the agency in the 2025 national budget, citing its significant reserve funds and previous budget utilization issues.

This decision has raised concerns, particularly among PhilHealth members, as it could impact healthcare services.

READ: ‘PhilHealth Namo, Ayaw Kawata’: Cebu groups urge subsidy return

In a Senate press release last December, Cayetano, who serves as the Senior Vice Chairperson of the Senate Finance Committee, objected to the removal of PhilHealth’s 2025 subsidy, arguing that it contradicts existing sin tax laws and threatens the sustainability of PhilHealth’s coverage for indirect contributors.

Meanwhile, PhilHealth Chief Edwin Mercado assured in a March 6 interview with national media that the agency has sufficient funds for its members despite receiving zero budget allocation for 2025.

“Kami po ay naniniwalang ang proseso ay patas at ito ay dumadaan sa masusing pagkikilatis ng ating mga mahistrado sa mataas na hukuman. Kung ano po ang desisyon ng ating mga kagalang-galang na mahistrado ay amin pong i-a-abide at susundin,” Mercado said.

(We believe the process is fair and undergoes thorough evaluation by our justices in the Supreme Court. Whatever their decision is, we will abide by it)

He also emphasized that PhilHealth still has surplus funds from collected premium payments.

“May mga natitira po yun na iniipon ng ating PhilHealth at ‘yan po yung amin ngayong ginagamit. Bagamat kami po ay hindi nakakuha ng subsidiya para po dun sa mga indirect members natin ngayong taong ito, may sapat pong surplus at reserve fund para po i-cover yung aming mga pinaplanong benepisyong ilalatag ngayong taong ito,” he added.

(PhilHealth has saved surplus funds, and we are now using them. Even though we did not receive a subsidy for our indirect members this year, we have sufficient surplus and reserve funds to cover the benefits we plan to implement this year)

After meeting with UWOP members on Saturday, Cayetano proceeded to the Cebu Capitol to meet with Governor Gwen Garcia and attend a meeting with the Department of Transportation and its allied agencies regarding the Cebu Bus Rapid Transit (CBRT) project. /clorenciana