THE PHILIPPINES needs P450 billion every year to provide free healthcare services in government hospitals, according to the Health secretary.
“When the Legislature passed the Universal Healthcare Act, health economists made estimates of how much the DoH (Department of Health) would need annually to implement universal healthcare, and the figure they provided was P450 billion per year,” Health Secretary Teodoro J. Herbosa told congressmen at a budget hearing on Thursday.
This year, the government allotted P320 billion to the health sector, covering both the DoH and Philippine Health Insurance Corp. (PhilHealth), according to Budget department data.
Mr. Herbosa noted that while an additional P100 billion could make a “significant impact,” the agency would not immediately request the full amount because of absorptive capacity constraints.
“We’ll only ask for what we can realistically utilize each year,” he said, noting that the rollout of universal healthcare would be phased.
Despite reforms under the Universal Healthcare Act of 2019, Filipino households continue to face high medical costs. A Congressional Policy and Budget Research Department report released in February showed out-of-pocket healthcare payments reached P550.2 billion in 2023, accounting for 44.4% of total health spending.
State-funded and compulsory contributions amounted to P528.8 billion or 42.6%, while voluntary healthcare payments totaled P161.3 billion or 13%.
President Ferdinand R. Marcos, Jr. highlighted the government’s “zero-balance billing” program in his fourth State of the Nation Address in July, promising that patients at government hospitals would no longer pay out-of-pocket expenses for medical services.
Budget Secretary Amenah F. Pangandaman said sustaining the program requires at least P20 billion in annual funding.
Mr. Herbosa warned that costs could rise further as medical prices increase.
“The cost of diagnostics, cost of medicine, continues to rise,” he said. “The equipment is becoming more modern, but it’s becoming more expensive. Medicines are becoming more innovative, more effective, but more expensive.” — Kenneth Christiane L. Basilio
