MANILA, Philippines — Senator Loren Legarda has called for an immediate overhaul of the country’s health financing system, urging her colleagues to pass the PhilHealth Automatic Funding Act to address chronic budget gaps that leave millions of Filipinos vulnerable to high medical costs.
During a privilege speech on February 3, 2026, Legarda highlighted that billions in legally mandated funds have failed to reach PhilHealth, undermining the goals of the Universal Health Care (UHC) Act.
Critical Funding Shortfalls Legarda detailed staggering figures in missing or diverted revenue intended for public health:
- Sin Tax Arrears: PhilHealth has been deprived of P113.44 billion in cumulative sin tax revenues from 2023 to 2026.
- Gaming and Lottery Shares: An additional P106.95 billion in statutory shares from the Philippine Amusement and Gaming Corporation (PAGCOR) and the Philippine Charity Sweepstakes Office (PCSO) remains unpaid.
- National Treasury Diversion: She criticized a 2024 Department of Finance (DOF) order that returned P60 billion in unused PhilHealth funds to the National Treasury, arguing that such moves weaken the healthcare system.
Proposed Legislative Reforms To stop the “cycle of begging for treatment,” Legarda is pushing for Senate Bill No. 1662 (the PhilHealth Automatic Funding Act):
- Automatic Release: The bill would mandate the automatic release of all legally due funds to PhilHealth without the need for further executive discretion.
- Transparency: It requires quarterly reports from the Bureau of Internal Revenue (BIR), PAGCOR, and PCSO to ensure accountability.
- Phase-out of MAIFIP: Legarda proposed the gradual phase-out of the Medical Assistance for Indigent and Financially Incapacitated Patients (MAIFIP) program. She argued that these funds should be redirected to PhilHealth to strengthen case rates and eliminate the need for patients to seek political endorsements for hospital bills.
A “Moral Emergency” The senator emphasized the human toll of these financial delays, citing mothers and elderly citizens who avoid hospitals out of fear of out-of-pocket expenses despite having insurance cards.
“The poor should not have to beg in order to live. The sick should not have to beg in order to be treated,” Legarda stated. She concluded with a warning to PhilHealth and DOH officials that any misuse or toleration of funding abuse will be met with full legal accountability from the Senate.