POSITION PAPER

MAG’s Commitment to Public Accountability


The Medical Action Group (MAG) firmly rejects the Department of Budget and Management’s (DBM) claim that our statement regarding the reduction of PhilHealth coverage constitutes "fake news." Our concerns are based on a thorough analysis of budget documents and the FY 2024 General Appropriations Act (GAA), which show a significant reduction in the PhilHealth budget. This budget cut has resulted in a decrease in the number of beneficiaries, from 25.2 million to 10.6 million, directly impacting vulnerable groups, including 4Ps beneficiaries, senior citizens, persons with disabilities (PWDs), and their dependents.


This decision undermines the principles of universal healthcare, which should prioritize access for all, particularly those who cannot afford private insurance. By reducing PhilHealth coverage, the government is placing millions of Filipinos at risk of losing essential healthcare services.


DBM's Responsibility in the Reduction of Coverage


The DBM’s role in this reduction cannot be ignored. The Department's technical reviews, conducted before the National Expenditure Program (NEP) was submitted to Congress, laid the groundwork for funding decisions. PhilHealth had requested PhP 80 billion to support indirect contributors, in line with RA 10606 and other laws benefiting vulnerable populations. However, the DBM transferred PhP 40 billion from PhilHealth to the Department of Health’s (DOH) Medical Assistance to Indigents and Financially Incapable Patients (MAIFIP) program, leading to a significant reduction in coverage.


As a result, only 10.6 million indirect members are currently insured, far below the original target of 21 million. The reduction was made evident during recent budget deliberations, where DBM outlined coverage figures of 10.6 million for 2024 and 14.1 million for 2025—both significantly lower than PhilHealth’s recommended coverage of 25.2 million for 2025.


This reduction leaves over 30 million Filipinos, including dependents, without health insurance. Additionally, DBM’s recommendation to lower premiums for NHTS members and senior citizens further limits the coverage period, restricting the program's ability to meet the healthcare needs of vulnerable populations.


A Call for Constructive Dialogue


Instead of dismissing these legitimate concerns, MAG urges the DBM to engage in transparent, evidence-based dialogue with civil society organizations. The ongoing reduction in PhilHealth coverage has far-reaching consequences for millions of Filipinos, and it is essential to address these issues collaboratively.


We call on the government to reconsider the budget cuts to PhilHealth and to prioritize the health and well-being of the most vulnerable members of society. MAG remains committed to advocating for universal healthcare and ensuring that no Filipino is left behind in accessing essential services.


We will continue to hold relevant agencies accountable for their decisions and push for constructive solutions that protect the health of all Filipinos.