Erice Flags 53% Cut in Medical Aid Budget, Cites P58-B 'Presidential Pork Barrel'

Caloocan City 2nd District Rep. Edgar “Egay” R. Erice has flagged significant budget cuts to medical assistance programs under the Department of Health’s (DoH) proposed 2027 budget, alleging that funds have been redirected to what he described as a “presidential pork barrel.” This refers to the Local Government Support Fund (LGSF), which he believes may be distributed to local governments lacking specific plans, potentially serving as a conduit for political funding ahead of the 2028 elections. “What they replaced it with was the P58-billion presidential pork barrel—the Local Government Support Fund (LGSF), which will be distributed to local governments that do not yet have specific plans on where it will be used,” Mr. Erice said in an interview on the sidelines of the second budget hearing of the Department of Health (DoH) before the House Committee on Appropriations. “Imagine, there is funding and there is a program that you can simply continue. It is already a good program. They took away its funding. There is no project, there is no program, but they put funding into it to be distributed to politicians,” he added. “This budget is for the 2028 campaign. So they’re putting up funds to be distributed to politicians,” he also said. According to Mr. Erice, the budget for the Medical Assistance to Indigent and Financially Incapacitated Patients (MAIFIP) program is slated for a 53% reduction, dropping from P51 billion under the 2026 General Appropriations Act (GAA) to P24 billion in the 2027 National Expenditure Program (NEP). Furthermore, the Universal Health Care for Zero Billing program, which aims to cover out-of-pocket hospital expenses for indigent patients, is reportedly allocated zero budget for the upcoming fiscal year. The representative also highlighted reductions in other budget items within the DoH. These include a 34% cut to the Health Facilities Enhancement Program (HFEP); a 10% reduction in the establishment of DoH hospitals in Metro Manila; and a substantial 68% decrease in the Health Emergency Preparedness and Response program, among others. In response, DoH Secretary Dr. Edwin M. Mercado asked lawmakers to restore the P11 billion cut from the agency’s Maintenance and Other Operating Expenses (MOOE) and increase the Health Facilities Enhancement Program budget from P14 billion to P29 billion. “Our request is that once the Appropriations Committee deliberates, we hope our appeal will be reconsidered. We have already submitted [our proposal],” Mr. Mercado said. If the smaller 2027 budget under the NEP is approved, Mr. Mercado said the agency will adapt by pursuing efficiency measures. This includes negotiating agreements with healthcare providers to shift from individual payments to bulk or bundled payments, which could help streamline transactions and improve cost efficiency. Secretary Mercado also indicated a pivot towards primary care to reduce hospitalization costs, noting that 33% of illnesses are controllable at the primary-care level. Regarding the zero allocation for the DoH’s zero-balance billing program, Mr. Mercado clarified that expenses would be covered by MAIFIP, while the quantified free services provided in DoH hospitals should be covered by efficiency savings from Maintenance and Other Operating Expenses (MOOE) and Personnel Services (PS). — Edg Adrian A. Eva Source: BusinessWorld Nation