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.