OBJECTIVES: To determine (1) the cost of hospitalization and 1-week post-discharge, (2) the difference between estimated costs and the Philippine Health Insurance Corporation (PhilHealth) pneumonia case rate payments, and (3) the economic burden of community-acquired pneumonia (moderate and high-risk, CAP-MR and CAP-HR, respectively) among patients aged > 19 years old in the Philippines. METHODS: The study involved two tertiary private hospitals in the Philippines.  Using the societal perspective, out-of-pocket expenses and productivity losses were computed.  A base case and sensitivity analyses were performed and the economic burden of pneumonia was determined using Philhealth claims. RESULTS: The estimated cost of hospitalization for CAP-MR was PhP 36,153 - 113,633 (US$852 – 2,678) and the1-week post-discharge cost for CAP-MR was PhP 1,450 – 8,800  (US$ 34 – 207) The cost of hospitalization for CAP-HR was PhP 104,544 – 249,695 (US$2,464 – 5,885)  and PhP 101,248 – 243, 495 (US$2,386 – 5,739) with the use of either invasive ventilation or non-invasive ventilation, respectively.  The post discharge cost for CAP-HR was PhP 1,716 – 10,529 (US$40 – 248).  In comparison, the present PhilHealth case rate payments for CAP-MR is PhP 15,000 (US$354) and PhP 32,000 (US$754) for CAP-HR.  Based on the number of PhilHealth claims for the year 2012 and the study results, the economic burden of pneumonia in 2012 was PhP 8.48 billion for CAP-MR and PhP 643.76 million for CAP-HR.   CONCLUSIONS: The paper reported the hospitalization and follow-up costs of CAP-MR and CAP-HR based on the societal perspective. It showed significant difference from the current case rate payments of the Philippine Health Insurance Corporation.