QuestionsQuestions (DOH ADMINISTRATIVE ORDER NO. 2010-0032)
It is issued to implement Section 4(1) of the IRR of Republic Act (RA) No. 9994 (Expanded Senior Citizens Act of 2010) on the 20% discount and VAT exemption for medicines/health-related products, and to establish guidelines for compulsory rebates and monitoring to ensure fair discounts while preserving viability of drug outlets and companies.
It applies to all private and government hospitals and health facilities, health care professionals, PhilHealth, all related health-care establishments, pharmacies and other retail outlets dispensing medicines to all Senior Citizens.
A Filipino citizen residing in the Philippines who is 60 years old or above. It may apply to dual citizens if they prove Filipino citizenship and have been residents in the Philippines for at least six (6) months.
A frail/sickly/senior citizen with disability without pension or regular income, as determined by DSWD in consultation with the NCMB.
Medicines (as defined), medical devices (as defined), and medical equipment and other health-related provisions/benefits covered by the RA 9994 framework and the Order’s mechanics.
First deduct VAT from the retail price (inclusive of VAT) to get Net Retail Price; then deduct 20% from the Net Retail Price to get the Senior Citizen’s Price.
VAT is computed as P100/1.12 = P10.71; Net Retail Price is P100.00 − P10.71 = P89.29; 20% discount is 0.20×89.29 = P17.86; Senior Citizen’s Price is P89.29 − P17.86 = P71.43.
No. It is non-transferable and applies exclusively to medicines for the use of Senior Citizens.
Double discounts are not allowed. The Senior Citizen may choose either promotional campaigns/other discounts on certain medicines OR the Senior Citizen discount; only the Senior Citizen discount remains exempt from VAT.
Senior Citizen ID issued by the mayor/OSCA or Barangay captain (recognized nationwide); and except for OTC drugs, a doctor’s prescription with required details (e.g., name, age, sex, address of Senior Citizen, date, generic name, dosage form/strength, quantity, physician’s name/signature, physician’s license number, and narcotic license/S2 if applicable).
No. During operating hours, all licensed establishments dispensing medicines are strictly prohibited from scheduling or limiting the time for availment of the Senior Citizen discount.
A single dispensing must be in accordance with the prescription and should not cover more than one (1) month supply. For partial filling, pharmacists must indicate partially filled quantity and the unfilled balance; the Senior Citizen retains the partially filled prescription and later presents it to complete the quantity. OTCs may be limited to one (1) day but not exceeding a maximum of seven (7) days supply.
The official receipt must contain the Retail Price and the Senior Citizen Discount Price.
With the respective LGU OSCA Office where the purchase was made or where the Senior Citizen resides, whichever is more convenient.
Only medicines included in the PNDF are reimbursed. If the Senior Citizen is a PhilHealth member/dependent, the VAT exemption and 20% discount shall not be charged to PhilHealth benefits coverage; only the 80% of fees/charges expected to be shouldered by the Senior Citizen may be charged under PhilHealth.
Retailers’ share is 30% of the 20% discount, which can be claimed as tax deduction.
If the retailer is granted a sales discount of 16% or more for a specific product by the manufacturer/distributor/wholesaler-retailer/wholesaler, no rebates will be due to the retailer (treated as the manufacturer’s/distributor’s share).