Funding Source and Financial Provisions
- The estimated yearly cost of approximately P2.3 million for the Medicare benefits of retirees will be sourced from the surplus of the Medicare Insurance Fund.
- The Medicare Insurance Fund is administered by the Government Service Insurance System (GSIS).
Termination upon Implementation of Program II
- The free Medicare coverage for government retirees under this decree automatically ends once Program II of the Philippine Medicare Act is implemented.
Annual Valuation and Government Guarantee
- A yearly valuation of the Medicare Insurance Fund is mandated to assess sustainability.
- If the Fund cannot sustain the free coverage, the National Government is required to guarantee payment of contributions to continue coverage.
Limitations on Coverage
- The free Medicare coverage applies only to eligible government retirees.
- Legal dependents of retirees are excluded from this free Medicare coverage.
Implementation and Rulemaking
- The Government Service Insurance System is tasked to adopt rules and regulations to implement the decree.
- These rules must be issued within 30 days from the date of the decree.
Context and Legal Authority
- The decree was issued by President Ferdinand E. Marcos under constitutional powers and relevant proclamations.
- It responds to the petitions of the Philippine Government Retirees Association, considering retirees’ limited pension and government welfare responsibilities.
Implementing Guidelines
- GSIS Circular No. 172, dated March 19, 1974, provides the implementing rules and regulations for the decree, facilitating its execution.