News Life and Health08 May 2026

US$1bn returned to Philippine state health insurer's coffers amid heavy criticism


A total of PHP60bn ($1.07bn) has been returned to Manila's state health insurer, the Philippine Health Insurance Corporation (PhilHealth), from the nation's treasury.

For context, the fund was part of PhilHealth’s excess reserve funds that were transferred to the national coffers under the 2024 budget utilisation act. The move was met with massive backlash, with groups and advocates urging the funds to be used to finance benefits. Petitions before the Philippines’ highest court were earlier filed, challenging the legality of the move.

On Wednesday, the state insurer said it will use the funds to improve its services.

“The corporation will ensure that every peso will be allocated to enhancing benefits, strengthening systems to speed up processes, and delivering fast, fair, and truly reliable service to every Filipino,” it said.

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