Metro Manila, Philippines — Public health reform advocate Dr. Tony Leachon has raised alarm over the state of the country’s healthcare system, warning that it could collapse by 2028 if the Marcos administration continues to provide zero subsidy to the Philippine Health Insurance Corporation (PhilHealth) and fails to prioritize the health sector.
“Yung zero subsidy is actually a huge, huge, huge red flag or symbol that the priority of the government will not be on health,” Leachon said in an interview with NewsWatch Plus. Leachon emphasized that the decision to withhold subsidies violates provisions of the Universal Health Care Act and the Sin Tax Reforms Law.“Ano pa nga asahan natin? Eh hindi sila nag-increase. Eh patuloy na lumolobo ang nagkakasakit sa heart attack, sa stroke, sa cancer, sa diabetes. Tumataba ang tao. Tapos hindi lang yun. Ang nagkakasakit ngayon, mahihirap. At mga bata, so hindi man lang sila nagproject na hindi na ito sakit ng mayaman at ng matatanda. So dapat, mag-iexpand sila kasi ang nagkakasakit ngayon, 20 anyos, 30 anyos, pahirap ng pahirap, saan ka pupuhan nun? Eh wala yan mga yan HMO cards. Wala yan savings yung mga yan,” Leachon said. [Translation: What else can we expect? They haven’t raised anything. Meanwhile, cases of heart attacks, strokes, cancer, and diabetes are growing. People are becoming more obese. And it’s not just that—now, the ones getting sick are the poor and children. They didn’t even project that this is no longer just a disease for the rich and the elderly. So they should expand their coverage, because the ones getting sick now are 20- or 30-year-olds, and it’s becoming harder and harder for them to cope. Where will they get the money for that? These people don’t have HMO cards. They don’t have savings.]Leachon added that the healthcare system’s failure to project these developments will worsen the situation.“Tapos zero subsidy ka. So parang sabi ko, hindi na nag-iisip ang mga tao sa gobyerno. Walang projections. So ang nakikita ko, magkukolaps ng healthcare by 2028,” he warned. [Translation: And then you have zero subsidy. It seems like the government isn’t thinking at all. There are no projections. What I see is that the healthcare system will collapse by 2028.]Leachon further warned that if the government continues to deny subsidies to PhilHealth, it could lead to the total breakdown of the healthcare system.
“Kasi based on corporate governance, at least man lang may run rate ka na 10%. Let’s say you have 74 billion, dapat next year yan 84, eh zero pa ngayon, with the expanding number of patients na merong non-communicable diseases, which is 80%, that is about 756 billion, e wala kang subsidy. Then you have an exodus of doctors and nurses going out of the country. And then you have diminution of the field health benefits. And of course, there is an increase in illnesses right now. And then wala kang infrastructure. Yan ang components ng universal healthcare. So you will have a collapse of the healthcare system by 2028.,” Leachon stressed.
[Translation: Because based on corporate governance, at least you should have a run rate of 10%. Let’s say you have P74 billion, that should grow to P84 billion next year. But now it’s zero. With the growing number of patients suffering from non-communicable diseases, which make up 80% of the cases, that amounts to about P756 billion. And there’s no subsidy. You’re also seeing an exodus of doctors and nurses leaving the country. You have fewer health benefits from PhilHealth. And, of course, illnesses are on the rise, and there’s no infrastructure. These are the components of universal healthcare. So, you will have a collapse of the healthcare system by 2028]Leachon’s concerns are echoed by civil society groups such as the Medical Action Group (MAG) and Action for Economic Reforms (AER), which also criticized the 2025 General Appropriations Act (GAA).“MAG and AER criticize the President’s inaction on the zero budget allocation for the Philippine Health Insurance Corporation (PhilHealth) despite numerous appeals from citizens and civil society groups,” the organizations stated.The groups are now preparing to seek legal redress from the Supreme Court regarding the 2025 GAA, arguing that the zero-budget allocation for PhilHealth is unlawful.“This clearly violates the Filipino people’s right to health,” they added in a statement.
DOH: PhilHealth board allocates P284B for 2025, gov’t working to lessen out-of-pocket expenses of Filipinos
In response to these concerns, the Department of Health (DOH) has pointed to the approval of a P284 billion Corporate Operating Budget (COB) for PhilHealth in Fiscal Year 2025. This new budget, which represents a 10% increase from the previous year’s allocation of P259 billion, includes a 50% increase in selected case rates and expanded benefits for key healthcare services.
“We have a surplus because of underspending on benefits over the years, which unfortunately resulted in higher out-of-pocket costs for Filipino families,” said Health Secretary Teodoro Herbosa, who also serves as the chairman of the PhilHealth board. “The approved budget for 2025 recognizes the need to allocate more resources to benefits, so that Filipinos will pay less for healthcare,” Herbosa added.
