Question & AnswerQ&A (DOH ADMINISTRATIVE ORDER NO. 2010-0032)
The main purpose is to establish guidelines and mechanisms for implementing the 20% Senior Citizens discount on medicines, medical equipment, and other health-related provisions, including the sharing of the discount burden among retailers, manufacturers, and distributors.
A Senior Citizen is any Filipino citizen, resident of the Philippines, who is sixty years old or above. It includes senior citizens with dual citizenship who prove Filipino citizenship and have been residents for at least six months in the Philippines.
Medicines include chemical compounds or biological substances intended for treatment, prevention, or diagnosis of diseases, including those recognized in official pharmacopoeias, herbal/traditional drugs recognized in the Philippine National Drug Formulary, provided they are finished dosage forms intended for treatment or cure, and not food.
First, the VAT is deducted from the retail price to get the net retail price. Then, the 20% discount is deducted from the net retail price to obtain the Senior Citizen's price.
No, double discounts are not allowed. Senior Citizens must choose either the promotional discounts or the Senior Citizens discount, noting that only the Senior Citizens discount is VAT-exempt.
They must present a valid ID issued by a mayor, OSCA, or barangay captain and for non-over-the-counter drugs, a doctor's prescription with specific details including name, age, address, and physician's credentials. A purchase slip booklet is also used for tracking OTC purchases.
They must dispense medicines per prescription (not exceeding one month supply), issue official receipts showing retail and discounted prices, provide priority lanes for elderly, display information on the discount, and not limit or restrict the time for availing the discount.
Retailers bear 30% of the 20% discount share, claimable as a tax deduction; manufacturers/distributors and wholesalers share the remaining 70%, with rebates requiring formal agreements and documentary evidence. Specific discount thresholds affect rebate obligations.
Penalties and sanctions under Section 7 of R.A. 9994 (amended Section 10 of RA 9257) apply, which include fines, imprisonment, and revocation of licenses for establishments failing to comply.
All private and government hospitals, health-related facilities, health care professionals, Philippine Health Insurance Corporation, pharmacies, and other retail outlets dispensing medicines to Senior Citizens.