President Ferdinand Marcos Jr. has appointed Dr. Beverly Lorraine Ho as the new president and chief executive officer of the Philippine Health Insurance Corporation (PhilHealth), marking a significant shift in leadership within the country’s health insurance system. The appointment was announced on Monday, with Ho taking over from Edwin Mercado, who has been transferred to the Department of Health (DOH) to replace Dr. Jose "Brix" Pujalte Jr. Ho previously served as a senior official in the DOH, bringing her extensive experience in public health management to the role. Ho’s selection comes at a time of heightened scrutiny over the health sector’s budget and performance. The Marcos administration has proposed a P353.8-billion budget for the health sector in 2027, which represents a decrease from the P448-billion budget allocated in 2026. This proposed budget covers the DOH, PhilHealth, and other specialized health institutions. Nearly 75 percent of the total allocation, amounting to P264 billion, is designated for the DOH itself, reflecting a reduction compared to its 2026 budget. Of this, more than half, or P133.3 billion, is set aside for the Health Facilities Operation Program, which encompasses operations at DOH hospitals across Metro Manila, regional hospitals, and other health facilities. The proposed budget also includes substantial allocations for specific programs aimed at improving healthcare access and outcomes. For instance, P24.2 billion is earmarked for the Medical Assistance to Indigent and Financially Incapacitated Patients program, while P14.5 billion is allocated for the Health Facilities Enhancement Program, which focuses on constructing and upgrading public health infrastructure. Additionally, there is a dedicated P3.75 billion for the Cancer Assistance Fund and P1.3 billion for the Cancer Control Program, highlighting the administration’s emphasis on addressing noncommunicable diseases. PhilHealth, which is requesting a P74.4-billion budget for 2027, aims to strengthen the implementation of the Universal Health Care Act. This includes expanding benefit packages, implementing zero balance billing programs for government hospitals, and enhancing coverage for dialysis, mental health outpatient care, severe acute malnutrition, and other critical health services. The proposed budget reflects efforts to ensure broader access to essential healthcare services, particularly for vulnerable populations. The leadership change at PhilHealth coincides with broader strategic considerations within the health sector. With Ho’s background in the DOH, the transition underscores the administration’s intent to streamline operations and enhance coordination between key health agencies. Her previous roles suggest she is familiar with the challenges facing the health system, including resource constraints and the need for improved service delivery. In parallel, the administration has also addressed regional security concerns, emphasizing the Philippines’ commitment to maintaining peace and stability in the Asia-Pacific region. President Marcos reiterated that the country has no intention of becoming entangled in conflicts involving Taiwan, stating that the Philippines would not allow attacks on its territory. This stance aligns with the country’s adherence to the One China Policy, recognizing the People's Republic of China as the sole legitimate government of China while maintaining economic and cultural ties with Taiwan through bilateral offices. As the health sector navigates these changes, the focus remains on ensuring effective implementation of policies and adequate funding to meet the population’s healthcare needs. The upcoming year will test the administration’s ability to manage both domestic health priorities and external geopolitical dynamics.
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