PhilHealth just got a financial diet—but guess who’s starving? Hint: It’s not the ones making the budget cuts

The 2025 national budget completely slashes PhilHealth’s subsidy to zero, with officials citing its ₱600 billion in reserves as justification. But here’s the real question: When has cutting healthcare funding ever worked in favor of the people who actually need it?

PhilHealth, the country’s main health insurance provider, has long relied on government subsidies to support millions of Filipinos, especially those who can’t afford private healthcare. The decision to remove its subsidy was defended by lawmakers, arguing that PhilHealth has enough financial reserves to sustain operations, with President Marcos assuring uninterrupted benefits. 

Yet, even with subsidies, PhilHealth has struggled with delayed reimbursements. Now, hospitals warn of slower payouts, higher medical costs, and overwhelmed public facilities. Some private hospitals even threaten to sever ties, leaving patients to cover costs alone. Without state funding, how long before benefits shrink or member contributions rise?

Supporters argue this push for self-sufficiency will drive reforms, especially after years of corruption scandals. Others see it as an opportunity to reallocate funds to infrastructure, education, and job creation.

But is PhilHealth truly prepared to stand alone, or are millions of Filipinos being set up for a healthcare crisis? Efficiency is essential, but for ordinary citizens, this budget cut feels less like a fix and more like a ticking time bomb.

Public outrage was swift, with many questioning why healthcare funding was on the chopping block while unnecessary expenses in other sectors remained intact. Senator Risa Hontiveros called the move “irresponsible,” warning that PhilHealth’s reserves were never meant to replace state support overnight. Healthcare workers and hospitals echo these concerns: when funds run dry, it won’t be officials in air-conditioned offices who suffer—it will be patients in overcrowded wards and families scrambling to pay medical bills, and doctors forced to choose between treating patients or keeping their hospitals afloat.

This isn’t just about one bad budget cut—this is a dangerous signal that public healthcare funding is expendable in the eyes of those in power. Countries with strong public healthcare models increase state funding, not cut it. Yet, here we are, watching an experiment that could put millions at risk. The goal is “fiscal sustainability,” but at what cost? 

If PhilHealth is to survive without subsidies, then transparency and accountability should be non-negotiable. The government must prove that PhilHealth’s funds are being managed effectively and that services won’t deteriorate. More importantly, lawmakers should re-evaluate this budget cut before irreversible damage is done.

The government cannot gamble with people’s health. If this policy backfires, it won’t be lawmakers who suffer—it will be the millions of Filipinos they swore to serve. Healthcare is not a luxury. It is a right. And if we don’t push back now, we might wake up to a system where getting sick is a financial death sentence.