Metro Manila, Philippines — The Philippine Health Insurance Corporation (PhilHealth) board of directors has approved a historic P284 billion Corporate Operating Budget (COB) for Fiscal Year 2025. This new budget represents a 10% increase from the previous year’s allocation of P259 billion and includes a 50% boost in selected case rates, alongside expanded benefits for several key healthcare services.
In addition to the significant increases in case rates, the board approved the introduction of new benefits, including coverage for emergency care, optometric services for children, open heart surgery, and pediatric cataract extractions. “These changes aim to enhance the affordability and accessibility of essential healthcare services for Filipinos,” the Department of Health said in a statement. “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 Ted Herbosa, who also serves as the chairman of the PhilHealth board. “This new budget will allow PhilHealth to spend more on benefits, ensuring that families will spend less on healthcare,” he added/ Of the total P284 billion, P271 billion is allocated for benefit expenses, marking an 11% increase from the previous year. These funds will cover increased case rates, Z benefits, and additional outpatient services, such as mental health care, severe acute malnutrition, and emergency care. The PhilHealth Konsulta program will see capitation rates set at P1,700 and P2,100 per person, and hemodialysis sessions will be covered for 156 sessions at P6,350 per session.Despite the significant increase in benefits funding, the Board approved only a 3% rise in administrative expenses, from P12.1 billion in 2024 to P12.5 billion for 2025. This ensures that the majority of the budget is directed toward enhancing benefits and services.Capital expenditures for the coming fiscal year were set at just P259 million, a 91% reduction from the P2.9 billion approved in 2024. “PhilHealth has a surplus well above the legal reserve fund ceiling. This is due to the past underspending on benefits, which has led to Filipino families paying more out-of-pocket,” Herbosa explained. “The approved budget for 2025 recognizes the need to allocate more resources to benefits, so that Filipinos will pay less for healthcare.”
