Title
Guidelines for Senior Citizens' 20% Medicine Discount
Law
Doh Administrative Order No. 2010-0032
Decision Date
Oct 9, 2010
DOH Administrative Order No. 2010-0032 establishes guidelines for the implementation of the Expanded Senior Citizens Act of 2010, ensuring the rights of the elderly and providing procedures for availing the 20% discount on medicines, as well as specifying the sharing of the discount among retailers, manufacturers, and distributors.
A

Objectives

  • Set clear guidelines for implementing the 20% Senior Citizens discount on health products.
  • Create procedures for compulsory rebates and burden-sharing among stakeholders using a formula based on margins.
  • Establish monitoring systems to ensure compliance by drug companies, distributors, and retailers.

Coverage and Scope

  • Applies to all private and government hospitals, health facilities, professionals, PhilHealth, pharmacies, and retail outlets dispensing medicines to senior citizens.

Definitions

  • Senior Citizen: Filipino resident aged 60 years or above, including those with dual citizenship fulfilling residency and citizenship proof requirements.
  • Indigent Senior Citizen: Frail, sickly, disabled seniors lacking pension or regular income, as determined by DSWD and NCMB.
  • Medicines: Chemical or biological substances for treatment, diagnosis, or prevention of diseases, including herbal/traditional drugs recognized in the Philippine National Drug Formulary.
  • Medical Devices: Instruments or materials intended for diagnostic, treatment, preventive, or supportive human use not acting primarily by pharmacological means.
  • Medical Services: Includes hospital and professional physician services and necessary diagnostic/lab tests.
  • Dental Services: Oral health procedures essential for diagnosis/treatment.
  • Diagnostic and Laboratory Tests: Includes X-rays, CT scans, ECG, blood tests, etc.
  • Distributor/Wholesaler: Establishments procuring and distributing finished or raw health products wholesale.
  • Manufacturer: Establishments involved in production and processing of health products excluding drugstore compounding.
  • Retailer: Licensed establishments selling drugs directly to consumers.
  • Wholesaler-Retailer: Businesses transacting both wholesale and retail.
  • Non-Traditional Outlets: Licensed supermarkets and convenience stores selling non-prescription medicines.

General Rules on Discount Implementation

  • A mandatory 20% discount plus VAT exemption on medicines for senior citizens.
  • Computation involves deducting VAT to find net price, then applying 20% discount.
  • Discount applies only to medicines for senior citizens; pediatric formulations prescribed for seniors are included.
  • Government subsidized programs with existing discounts are exempt.
  • Complaints on non-compliance may be lodged with LGU OSCA offices.
  • Establishments must comply or face penalties.

Double Discount Prohibition

  • Senior Citizens cannot combine senior discount with other promotions or discounts.
  • When also PWDs, they may choose either discount but Senior Citizens discount enjoys VAT exemption.

Documentary Requirements

  • Senior Citizens must present a nationally recognized ID issued by local authorities.
  • Prescription required for non-OTC drugs with detailed physician and patient info.
  • OTC purchases to be recorded in a purchase slip booklet for monitoring.

Responsibilities of Retailers and Health Facilities

  • Single dispensing must follow prescriptions and be limited to one-month supply; partial fills noted.
  • OTC dispensing limited to a maximum seven days supply.
  • No time restrictions on availing discounts during operating hours.
  • Official receipts must detail retail price and discounted senior price.
  • Priority lanes and informational postings required.

PhilHealth Provisions

  • Only medicines in the Philippine National Drug Formulary reimbursed.
  • VAT exemption and 20% discount not charged against PhilHealth benefits; 80% of fees chargeable.

Sharing of Discounts Burden Among Stakeholders

  • Retailers, manufacturers, distributors, and wholesalers share rebate burdens based on agreed terms.
  • Retailers' share capped at 30% of the 20% discount, claimable as tax deduction.
  • Discounts from manufacturers/distributors above 16% negate further retailer rebates.
  • Complex rules govern sharing and rebate distribution among wholesalers and manufacturers.
  • Rebates claimable in money or medicines.
  • Documentary proof required to claim rebates.

Effectivity and Review

  • Guidelines retroactive to July 6, 2010.
  • Subject to review three months post-implementation.

Penalties and Sanctions

  • Non-compliance penalized per Section 7 of RA 9994 (amended Section 10 of RA 9257).

Separability

  • Invalid provisions do not affect the remaining provisions.

Repealing Clause

  • All inconsistent issuances, circulars, and memoranda are revoked or repealed accordingly.

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