Universal Health Care Financing Roadmap Set for Recalibration

Manila: Health officials are recalibrating the Universal Health Care (UHC) program's financing and implementation roadmap toward 2028, with PhilHealth targeting a further reduction in Filipinos' out-of-pocket medical spending and the Department of Health (DOH) working to complete key local health financing mechanisms.

According to Philippines News Agency, during the Senate Committee on Finance hearing on Friday, PhilHealth President and CEO Beverly Ho stated that the state insurer is now following the Philippine Development Plan target of reducing household out-of-pocket health spending to 37 percent by 2028. Ho acknowledged the need for recalibration due to changes every three years.

Out-of-pocket spending decreased to 41.2 percent of total health expenditure in 2025, from around 55 percent a decade ago. Ho mentioned that projections under the development plan suggest health spending needs to reach approximately PHP639 billion to meet the 2028 target.

Acting Health Secretary Edwin Mercado noted that the recalibration accounts for a two- to three-year delay in UHC implementation caused by the Covid-19 pandemic. Universal PhilHealth eligibility has been achieved, with all Filipinos entitled to coverage regardless of their contribution status.

Mercado emphasized the focus on strengthening the delivery side of the system, particularly the availability of accredited facilities capable of providing more complex procedures covered by PhilHealth. He highlighted services like open-heart surgery and renal transplantation under PhilHealth's Z benefit packages that need to be equally available nationwide.

Local governments are being prepared to play a larger role in managing integrated health systems under the UHC law. Mercado stated that around 110 local health systems are advancing in maturity, with a target set for 2028 for local health units or chief executives to have their respective Special Health Funds.

Meanwhile, Sen. Panfilo Lacson raised concerns about the repeated changes in spending plans and financing targets since the implementation began. He questioned the practical purpose of financing strategies if targets are frequently changed or missed and sought a clearer accounting of funds earmarked under various laws for UHC implementation, indicating that Congress might exercise its oversight authority if legally mandated allocations are not fully released.