Difice cl thr y TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session ) 25 AUG -4 P1:30 SENATE RECalro 8' S. No. 809 Introduced by Senator Loren Legarda 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 Millions of Filipinos belonging to our most vulnerable sectors, such as senior citizens, indigent families, persons with disabilities, and unemployed individuals, stand to lose access to free health insurance due to the government's decision to defund the Philippine Health Insurance Corporation (PhilHealth) in the 2025 national budget. While the agency draws from its reserve funds, concerns remain over the sustainability of health coverage and the proper use of legally earmarked sin tax revenues under the Universal Health Care (UHC) Law. As of 31 December 2024, PhilHealth had a total of 102,745,273 registered members and dependents, spanning all membership types nationwide. Among these, an estimated 36.88 million indirect contributors, including senior citizens, informal workers, unemployed persons with disabilities, and financially incapable individuals, and 18.76 million indigents identified through the National Household Targeting System were subsidized by the national government in 2024. Together, these sectors represent more than half of PhilHealth's covered population and depend almost entirely on public funding to access healthcare services. 1 1 PhilHealth Stats & Charts 2024, published 23 May 2025, retrieved on 31 July 2025, https://www.philhealth.gov.ph/about_us/statsncharts/SNC_2024_20250523_v1.3.pdf.
In 2024, the national government funded P40.35 billion for the premiums of indirect contributors and P18.19 billion for indigents.? These figures demonstrate the baseline public expenditure obligation to comply with the mandates of the UHC Law and other related legislation such as the Senior Citizens Act (RA 10645). Despite these obligations, PhilHealth received zero allocation in the 2025 National Expenditure Program (NEP). While the Department of Budget and Management (DBM) cited PhilHealth's actuarial reserves, projected to end at P375.32 billion, as justification, this move has raised widespread concern from public health advocates, civil society organizations, and lawmakers. Moreover, under Republic Act No. 11346, 80% of sin tax revenues collected from alcohol, tobacco, sweetened beverages, and vapor products are legally earmarked for PhilHealth's implementation of the UHC Law. For Fiscal Year 2025, at least P69.81 billion in sin tax allocations remain unreleased, prompting a petition before the Supreme Court by multiple civil society organizations. 3 Although PhilHealth has committed to continuing its services through internally managed funds, the long-term health security of millions of Filipinos from vulnerable sectors remains at risk without the restoration of direct government subsidy. This proposed measure, therefore, seeks to address that gap through a supplemental appropriation of P74,431,930,000.00 for Fiscal Year 2025. In view of the foregoing, the immediate passage of this measure is earnestly sought. LOREN LEGARDA 2 Ibid. 3 Ferrerias, V. A. (2025, June 13). Groups file petition in SC vs. 2025 zero budget for PhilHealth. BusinessMirror retrieved 31 July 2025: https://www.businessmirror.com.ph/2025/06/13/groups-file- petition-in-sc-vs-2025-zero-budget-for-philhealth/
Sellalo Office of tis: a TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 25 AUG - 4 P1:30 SENATE RECEIVED BY S. No. 809 Introduced by Senator Loren Legarda 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
2 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
5 used as subsidy for the National Health Insurance Program specifically for the 6 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
23 in printed form or by way of electronic document, to the House Committee on 24 Appropriations, the Senate Committee on Finance, and the Commission on Audit, the 25 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 27 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 provision of this Act is declared
unconstitutional, the remainder of the Act or any provision 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 6 Act is hereby repealed or modified accordingly.
Sec. 7. Effectivity. - This Act shall take effect fifteen (15) days following its
publication in the Official Gazette or a newspaper of general circulation. Approved,