MANILA, Philippines – The House of Representatives will launch an investigation into the management of funds by the state-run Philippine Health Insurance Corp. (PhilHealth) after lawmakers uncovered billions of pesos in purportedly “excess” funds.

House Speaker Martin Romualdez announced the probe in his closing remarks before Congress went on its holiday break. He emphasized that the inquiry would aim to address systemic issues in fund utilization rather than assign blame.

“Next year, the House will conduct a thorough and impartial investigation on how PhilHealth’s funds are being managed. This investigation is not about blame; it is about finding solutions,” Romualdez said.

He assured the public that the probe would ensure that every peso in PhilHealth’s coffers benefits its members. Romualdez hinted at possible reforms, including a one-year suspension of member contributions, reductions in premium rates, and expanded health benefits—culminating in the possibility of a “zero billing” system for Filipinos.

Billions in Surplus

During a hearing by the House Committee on Good Government and Public Accountability last week, lawmakers raised concerns over PhilHealth’s management of funds. Manila 3rd District Representative Joel Chua, who chairs the panel, revealed that PhilHealth had over ₱60 billion in excess funds sent to the national treasury, in addition to billions in surplus funds, reserves, and investments.

PhilHealth President and CEO Emmanuel Ledesma Jr. reported that, as of October, the agency had ₱150 billion in surplus funds, ₱281 billion in reserves, and an investment portfolio nearing ₱489 billion.

PhilHealth Chief Financial Officer Renato Limsiaco admitted that surplus funds, after covering benefit payments, are funneled into investments. “Once we’re done and OK, (once) we already paid the benefits, then the excess money will be used for investments,” Limsiaco explained.

Lawmakers Criticize Prioritization of Investments

House leaders criticized PhilHealth for prioritizing investments over improving healthcare services for the country’s 110 million citizens. Romualdez and other lawmakers stressed the urgency of implementing premium reductions and reforms to alleviate the rising healthcare costs burdening Filipino families.

“This simply means that the subsidy that the government gives for the purpose of improving healthcare has been diverted and used for investment purposes and not for healthcare?” Chua questioned during the hearing. “It seems that you’re more focused on the investment aspect to the detriment of healthcare.”

Chua and other lawmakers suggested a zero-subsidy allocation for PhilHealth under the ₱6.35-trillion national budget for 2025 unless significant reforms are enacted.

Expanding Coverage

In response to criticisms, Ledesma defended PhilHealth’s financial stability and announced plans to increase coverage for most case rate packages by 50%. However, lawmakers expressed frustration that the agency’s substantial reserves have not translated into tangible relief for Filipino families.

“Our investments here should be the lives of our people,” Chua emphasized.

The House is expected to resume deliberations and push for measures to ensure PhilHealth’s resources are directed toward improving healthcare services for all Filipinos.

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