TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
Senate
25 AUG-4 PI 30
SENATE 
S. No. 809
Introduced by Senator Loren Legarda
RliCEIV Fu 3't
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_vl.3.pdf.


In 2024, the national government funded P40.35 billion for the premiums of 
indirect contributors and P18.19 billion for indigents.2 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/


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE 
S. No. 809
mnrji
25 AUG “4 P1 :30
RECEiVtD BV
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:
1 
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
3 
hereby appropriated to supplement the FY 2025 General Appropriations Act.
4 
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:
7 
a. Fifty Three Billion One Hundred Thirty Four Million Three Hundred
8 
Seventy Thousand Pesos (P53,134,370,000.00) for the health insurance
9 
premiums of indirect contributors as defined under Republic Act No.
10 
11223 or the Universal Health Care Act, as well as their qualified
11 
dependents, indigents under the National Household Targeting System
12 
for Poverty Reduction as identified by the Department of Social Welfare
13 
and Development, senior citizens pursuant to Republic Act No. 10645,
14 
unemployed persons with disability jointly determined by the
15 
Department of Health (DOH) and the National Council on Disability


1 
Affairs, and financially-incapable polnt-of-service 
patients as identified
2 
by the DOH.
3 
b. Twenty One Billion One Hundred Seventy Million Pesos
4 
(P21,170,000,000.00) for the benefit package improvement under the
5 
Universal Health Care Law including, but not limited to, the expansion
6 
of dialysis coverage, mental health outpatient coverage, improvement of
7 
Z-benefit packages, severe acute malnutrition, 
all case rate,
8 
rationalization of selected medical and surgical procedures, and the
9 
implementation of the comprehensive outpatient benefit package,
10 
including free consultation fees, laboratory tests, other diagnostic
11 
services, outpatient drug benefit, and emergency medical services.
12 
c. One Hundred Twenty Seven Million Five Hundred Sixty Thousand Pesos
13 
(P127,560,000.00) for the health insurance premiums of the
14 
beneficiaries under the PAyapa at MAsaganang PamayaNAn (PAMANA)
15 
Program.
16 
Releases from this Fund shall be made by the Department of Budget and
17 
Management (DBM) directly to the Philippine Health Insurance Corporation
18 
(PhilHealth).
19 
Sec. 3. Availability of Appropriations. - The appropriations authorized in this Act
20 
shall be available for release and obligation for the purpose specified until December
21 
31,2025.
22 
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
26 
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
28 
implementing agency.
29 
Releases from the said Fund shall be subject to the submission of a special
30 
budget pursuant to Section 35, Chapter 5, Book VI of Executive Order No. 292, series
31 
of 1987.


1 
Sec. 5. Separability Clause. - If any portion or provision of this Act is declared
2 
unconstitutional, the remainder of the Act or any provision not affected thereby shall
3 
remain in force and effect.
4 
Sec. 6. Repeating Clause. - Any law, presidential decree or issuance, executive
5 
order, letter of instruction, rule or regulation inconsistent with the provisions of this
6 
Act is hereby repealed or modified accordingly.
7 
Sec. 7. Effectivity. - This Act shall take effect fifteen (15) days following its
8 
publication in the Official Gazette or a newspaper of general circulation.
Approved,