Medical Action Group (MAG) Statement
October 1, 2025
The Medical Action Group (MAG) expresses serious concern over the misuse and diversion of PhilHealth funds by the government, which has now placed the institution in financial crisis. While President Ferdinand Marcos Jr. has promised to return the 60 billion pesos taken from PhilHealth reserves, this action alone is not enough to restore public trust or ensure accountability.
PhilHealth is not a political fund. It is the lifeline of 103 million Filipinos, both direct contributors and indigent members, who rely on it for health coverage and essential medical support. The diversion of 60 billion pesos in 2024 for non-health projects, combined with the withholding of 242.28 billion pesos in mandated remittances from sin taxes and gaming revenues since 2019, is a direct attack on the right to health and on good governance.
This was not a mistake but a deliberate act. Senior officials, including Cabinet members who sat on the PhilHealth board, failed in their duty to protect the funds of its members. By allowing the misuse of resources, they violated the Universal Health Care Act, the Sin Tax Law, and the Corporation Code. They also weakened the very purpose of PhilHealth as a social safety net.
Returning the funds does not erase the damage done. It does not compensate for the interest lost, the benefits withheld, or the reduced access to healthcare for millions of Filipinos. Accountability requires more:
1. Return all diverted funds with interest, since these resources should have been growing to expand health coverage.
2. Hold government officials who allowed the misuse of PhilHealth funds legally accountable for breaking the law.
3. Establish safeguards through a clear Supreme Court ruling that will prohibit the diversion of PhilHealth funds for non health purposes.
4. Protect the rights of PhilHealth members by ensuring that contributions and remittances are used solely to improve and expand healthcare services.
MAG affirms that health is a right and not a privilege. Any government action that weakens PhilHealth and its financial sustainability is a direct threat to this right and must never be allowed again.
We stand with the health and labor sectors in demanding justice and reform. The misuse of PhilHealth funds is not only financial mismanagement but also a betrayal of public trust that endangers the health and lives of Filipinos.
Accountability must be ensured, safeguards must be established, and government must fulfill its obligation by making PhilHealth a true pillar of universal health care.