Supplemental Appropriations for Fy 2025

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 25 JUL -2 P4:06 First Regular Session ) RECENAG US SENATE S. No. - Introduced by Senator IV Ejercito AN ACT APPROPRIATING THE SUM OF SEVENTY FOUR BILLION FOUR HUNDRED THIRTY ONE MILLION NINE HUNDRED THIRTY THOUSAND PESOS (P74,431,930,000.00) AS SUPPLEMENTAL APPROPRIATIONS FOR FY 2025 AND FOR OTHER PURPOSES EXPLANATORY NOTE It is the declared policy of the state under Article II Section 15 that: "The State shall protect and promote the right to health of the people and instill health consciousness among them." Under the Republic Act No. 12116 or the General Appropriations Act of 2025, the Philippine Health Insurance Corporation (PhilHealth) was given zero subsidy. Under the National Expenditure Program (NEP) for FY 2025 submitted by the Department of Budget and Management, the amount of allocated for the National Health Insurance Program under PhilHealth is P74,431,930,000.00. This amount was supposed to cover the health insurance premiums of indirect contributors and their qualified dependents, indigents under the National Household Targeting System for Poverty Reduction, senior citizens, unemployed persons with disability, and financially-incapable Point-of-Service patients. Furthermore, the said amount was supposed to be appropriated for the additional

increase in the benefit package improvement under the Universal Health Care Law. This should have been use for the expansion of dialysis coverage, mental health outpatient coverage, improvement of Z-benefit packages, rationalization of selected medical and surgical procedures, and the implementation of the comprehensive outpatient benefit package. In addition, the amount would have been allocated for the health insurance premiums of the beneficiaries under the PAyapa at MAsaganang PamayaNAn (PAMANA) Program. 1 PhilHealth, the government-run insurance provider, has been confronted with issues of corruption, inefficiency and unsatisfactory delivery of affordable health services, inadequate healthcare benefit packages, among others. Connected to this issue is the questionable transfer of P89.9 billion PhilHealth reserve funds to the National Treasury, which led to a Supreme Court case. Be that as it may, we cannot pass the burden to our kababayans who are in need of accessible and affordable healthcare, and let them suffer the consequences for the failures and short-comings of PhilHealth in their mandate. Based from the actuarial study of PhilHealth, for 2025 alone, with a total income (premium payment of direct contributors, PCSO and PAGCOR, other income) of P250.82 billion and a total expense of P319.01 billion, the year end fund balance will go down to P375.32 billion, registering a P68.19 billion net loss. It is unfortunate that because of the zero-subsidy for PhilHealth, our National Health Insurance Program in the coming years is in jeopardy. It is important to point out some possible legal implications because of this action. Existing laws have already earmarked funds for PhilHealth for the implementation of the Universal Health Care (UHC) law. Under Section 14 of Republic Act No. 11346, it is mandated that "fifty percent (50%) of the total revenues collected from excise tax on sugar-sweetened beverages, to which eighty percent (80%) will go to PhilHealth for the implementation of the UHC law; fifty percent (50%) of the revenues collected from the excise tax on alcohol products to which eighty percent (80%) will go to PhilHealth for ' National Expenditure Program FY 2025

the implementation of the UHC law; fifty percent (50%) of the total tax collection from tobacco products to which eighty percent (80%) will go to PhilHealth for the implementation of the UHC law; and revenues from excise tax on heated tobacco products and vapor products to which eighty percent (80%) will go to PhilHealth for the implementation of the UHC law." Notwithstanding the mandate of this provision, no funds have been given to PhilHealth. PhilHealth may still have funds now to use to cover the premium payment of indirect contributors, which the government is supposed to subsidize, however we must take into account the long-term effect of this action to PhilHealth. We have to safeguard the financial sustainability of our country's health insurance system and must guarantee that healthcare coverage for millions of our kababayans, most specially the vulnerable population, will not be crippled in the coming years. For this reason, this measure aims to appropriate P74,431,930,000.00 as supplemental appropriations for FY 2025. This will be use to subsidized our National Health Insurance Program, specifically for the payment of premium contributions of indirect contributors and their dependents, indigents, senior citizens, unemployed persons with disability, financially-incapable point-of-service patients, and the beneficiaries under the PAyapa at MAsaganang PamayaNAn (PAMANA) Program. Also, the amount shall be appropriated for the improvement of benefit packages under the Universal Health Care Law. With this, the immediate passage of this bills is earnestly sought. JV EJERCITO

177. sense siti 1..' TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) 25 JUL -2 P4:06 First Regular Session REC.2/00 128 SENATE p.. S. No. 1 Introduced by Senator IV Ejercito AN ACT APPROPRIATING THE SUM OF SEVENTY FOUR BILLION FOUR HUNDRED THIRTY ONE MILLION NINE HUNDRED THIRTY THOUSAND PESOS (P74,431,930,000.00) AS SUPPLEMENTAL APPROPRIATIONS FOR FY 2025 AND FOR OTHER PURPOSES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

SECTION 1. Appropriations. - The sum of Seventy Four Billion Four Hundred Thirty

One Million Nine Hundred Thirty Thousand Pesos (P74,431,930,000.00) is hereby appropriated to supplement the FY 2025 General Appropriations Act.

Sec. 2. -Use and Release of Funds - The amounts appropriated herein shall be

used as subsidy for the National Health Insurance Program specifically for the following: a. Fifty Three Billion One Hundred Thirty Four Million Three Hundred Seventy Thousand Pesos (P53,134,370,000.00) for the health insurance premiums of indirect contributors as defined under Republic Act No. 11223 or the Universal Health Care Act, as well as their qualified dependents, indigents under the National Household Targeting System for Poverty Reduction as identified by the Department of Social Welfare and Development, senior citizens pursuant to Republic Act No. 10645, unemployed persons with disability jointly determined by

the Department of Health (DOH) and the National Council on Disability Affairs, and financially-incapable point-of-service patients as identified by the DOH. b. Twenty One Billion One Hundred Seventy Million Pesos (P21,170,000,000.00) for the benefit package improvement under the Universal Health Care Law including, but not limited to, the expansion of dialysis coverage, mental health outpatient coverage, improvement of Z-benefit packages, severe acute malnutrition, all case rate, rationalization of selected medical and surgical procedures, and the implementation of the comprehensive outpatient benefit package, including free consultation fees, laboratory tests, other diagnostic services, outpatient drug benefit, and emergency medical services. c. One Hundred Twenty Seven Million Five hundred Sixty Thousand Pesos (P127,560,000.00) for the health insurance premiums of the beneficiaries under the PAyapa at MAsaganang PamayaNAn (PAMANA) Program. Releases from this Fund shall be made by the Department of Budget and Management (DBM) directly to the Philippine Health Insurance Corporation (PhilHealth).

Sec. 3. Availability of Appropriations. - The appropriations authorized in this Act

shall be available for release and obligation for the purpose specified until December 31, 2025.

Sec. 4. Submission of Reports. - The DBM and PhilHealth shall submit, either in

printed form or by way of electronic document, to the House Committee on Appropriations, the Senate Committee on Finance and the Commission on Audit, the quarterly accountability reports on the utilization of funds. The DBM and the DBM's web administrator or his/her equivalent shall be responsible for ensuring that the said quarterly reports are likewise posted on the official website of the DBM and the implementing agency. Releases from the said Fund shall be subject to the submission of a special budget pursuant to Section 35, Chapter 5, Book VI of Executive Order No. 292, series of 1987.

Sec. 5. Separability Clause. - If any portion or provisions of this Act is declared

unconstitutional, the remainder of the Act or any provisions not affected thereby shall remain in force and effect.

Sec. 6. Repealing Clause. - Any law, presidential decree or issuance, executive

order, letter of instruction, rule or regulation inconsistent with the provisions of this Act is hereby repealed or modified accordingly.

Sec. 7. Effectivity. - This Act shall take effect fifteen (15) days following its

5 publication in the Official Gazette or a newspaper of general circulation. Approved,