Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 408)
The main purpose of Presidential Decree No. 408 is to provide ad interim free Medicare coverage for government retirees who are 60 years of age or over, recognizing that their limited life pensions may be insufficient for their healthcare needs.
It applies to all retirees under Republic Act No. 660 and those who retired with gratuity benefits under Republic Act No. 1616 who are now 60 years of age or over.
No, government retirees covered under this decree are not required to pay contributions for their Medicare coverage.
The funds will be taken from the surplus of the Medicare Insurance Fund under the administration of the Government Service Insurance System, estimated at approximately P2.3 million yearly.
The privilege of free Medicare coverage shall automatically cease upon the implementation of Program II of the Medicare Act.
No, the free coverage extended by this decree is not extended to the legal dependents of the government retirees.
If the free coverage cannot be sustained by the Fund, the National Government shall guarantee payment of the contributions necessary to continue the coverage of retirees.
It requires the Government Service Insurance System (GSIS) to adopt rules and regulations to implement the decree within thirty (30) days from the date of the decree.
GSIS Circular No. 172, dated March 19, 1974, entitled "Implementing Rules and Regulations for Medicare Coverage of Government Retirees Under Presidential Decree No. 408," facilitates implementation.