Manila: The Department of Health (DOH) announced that the approved 2026 national budget will significantly reduce out-of-pocket health expenses for Filipinos, marking the highest-ever sector-wide allocation under President Ferdinand R. Marcos Jr.'s administration.
According to Philippines News Agency, DOH Assistant Secretary Albert Domingo stated that the total health budget, including funds for the Philippine Health Insurance Corporation (PhilHealth), will reach PHP448 billion. This amount is close to the PHP450 billion annual funding level previously deemed necessary for the full implementation of the Universal Health Care (UHC) law.
Domingo highlighted that this budget is the highest for the Department of Health, encompassing both DOH and PhilHealth allocations. He noted the steady increase in health spending under the current administration. PhilHealth is set to receive PHP129 billion in 2026, which includes PHP60 billion ordered to be returned by the Supreme Court. This funding will enable the state health insurer to expand benefit packages and cover a larger portion of hospital costs.
Domingo emphasized the importance of increased government spending in reducing out-of-pocket expenses, especially for low-income families. He explained that when the government increases its contributions, out-of-pocket expenses decrease because PhilHealth covers more costs.
The zero balance billing policy in DOH hospitals for basic or ward accommodations will continue, with potential expansion to local government unit-run facilities. Currently, PhilHealth covers about 14 to 15 percent of a patient's hospital bill, but there are plans to increase this coverage to 25 to 30 percent or more as benefits are expanded.
Domingo pointed out that the additional funding is expected to significantly benefit the poorer segments of the population. He explained that if the population is divided into quintiles, the two poorest quintiles, or about two-fifths of the population, will benefit the most. These groups often face challenges as health expenses consume funds intended for food and other basic needs.
The law mandates that private hospitals allocate at least 10 percent of their beds for UHC patients, while zero balance billing remains assured in DOH hospitals.
