Gov’t eyes P353-billion health sector budget for 2027, lower than in 2026

DOH. The Department of Health facade.

Angie de Silva/Rappler

This is the third biggest proposed allocation in the 2027 National Expenditure Program, but it is lower than the P448-billion budget that the health sector received for 2026

AT A GLANCE

• The Marcos administration proposed a P353.8-billion budget for the health sector in 2027, which is lower than the P448-billion budget for 2026.
• The Department of Health is seeking P264 billion, while PhilHealth is requesting P74.4 billion.

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MANILA, Philippines – The Marcos administration is aiming for a P353.8-billion budget for the country’s health sector in 2027, covering the Department of Health (DOH) and its attached agencies, the Philippine Health Insurance Corporation (PhilHealth), and specialty hospitals.

This is the third biggest proposed allocation in the 2027 National Expenditure Program (NEP), after the Department of Education and the Department of Public Works and Highways.

However, it is lower than the P448-billion budget that the health sector received for 2026.

Of the health sector’s total proposed budget, nearly 75% or P264 billion would be for the DOH itself. This is around P33 billion less than its approved 2026 appropriations of over P297 billion.

More than half of the DOH’s proposed funds, or P133.3 billion, would be for the Health Facilities Operation Program, which includes the following:

• Operations of DOH hospitals in Metro Manila: P26.9 billion
• Operations of DOH regional hospitals and other health facilities: P102.8 billion
• Operations of dangerous drug abuse treatment and rehabilitation centers: P2.3 billion
• Operations of blood centers and National Voluntary Blood Services Program: P639.3 million
• Operations of the Philippine Health Laboratory System: P429.3 million
• Operations of DOH health and wellness facilities: P87.2 million

Among the other major allocations is the P24.2 billion for the Medical Assistance to Indigent and Financially Incapacitated Patients, or MAIFIP.

P14.5 billion is allocated for the Health Facilities Enhancement Program, which involves construction and upgrading of public health infrastructure as well as purchase of equipment.

The department also listed funding for cancer interventions through a P3.75-billion Cancer Assistance Fund. In addition, it will get P1.3 billion for its Cancer Control Program from the P2.73 billion earmarked for commodities for noncommunicable disease prevention and control.

Proposed PhilHealth budget

Meanwhile, state insurer PhilHealth is requesting a P74.4-billion budget in 2027.

Of that amount, P55.4 billion is allotted for its National Health Insurance Program, to subsidize the premiums of indigents, senior citizens, persons with disabilities, and low-income solo parents.

The remaining P19 billion is being sought to strengthen the implementation of the Universal Health Care (UHC) Act or Republic Act No. 11223 by expanding several initiatives, such as:

• Z Benefit packages
• Zero Balance Billing Program for DOH and local government unit hospitals
• Dialysis coverage
• Mental health outpatient coverage
• Severe acute malnutrition
• Yaman ng Kalusugan Program or YAKAP, including the Guaranteed Accessible Medications for Outpatient Treatment or GAMOT Program

The state insurer also included the implementation of the comprehensive outpatient benefit package — which guarantees free consultation fees, laboratory tests, diagnostic services, outpatient drug benefits, and emergency medical services — under the funds for expanded implementation of the UHC Act.

For 2026, PhilHealth’s budget reached P129 billion, as it includes the P60 billion ordered returned by the Supreme Court.

Shake-up in leadership

The health department made headlines a day before the NEP was released as President Ferdinand Marcos Jr. appointed PhilHealth President and Chief Executive Officer Edwin Mercado to lead the DOH, replacing then-health secretary Jose Pujalte Jr.

Pujalte resigned last Monday, August 10, after leading the DOH for only 28 days. He cited health reasons, similar to his predecessor, Teodoro Herbosa, who resigned in July.

At PhilHealth, Mercado has been replaced by former DOH assistant secretary Beverly Lorraine Ho, who was the chief health officer of Ayala Healthcare Holdings before moving to the state insurer.

Mercado is set to defend the health department’s budget proposal before the House committee on appropriations on September 2. – Rappler.com