PROVIDING FOR AD INTERIM MEDICARE COVERAGE FOR GOVERNMENT RETIREES

• Number: Presidential Decree No. 408
• Sections: 7

Preamble

WHEREAS, the Government realizes and recognizes that the

limited life pensions of some government retirees are hardly sufficient

for their requirements;

WHEREAS, the Philippine Government Retirees Association,

Incorporated, has petitioned that they be covered free of charge under

Program I of Republic Act No. 6111, otherwise known as the Philippine

Medicare Act of 1969;

WHEREAS, retired government employees have spent the best

years of their lives in the government service;

WHEREAS, considering that the amount necessary to include

government retirees within the coverage of the Medicare Act, which is

estimated at P2.3 million yearly, can be obtained from the surplus funds

of the Medicare; and

WHEREAS, the Government Service Insurance System and the

Philippine Medical Care Commission have endorsed the petition of the

Philippine Government Retirees Association, Incorporated, favorable

under certain conditions;

NOW, THEREFORE I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers in me vested by the Constitution as

Commander-in-Chief of all the Armed Forces of the Philippines, and

pursuant to Proclamation No. 1081, dated September 21, 1972, and General

Order No. 1, dated September 22, 1972, as amended, do hereby decree and

order:

Section 1

SECTION 1. Medicare coverage shall be extended to all

retirees under Republic Act No. 660 and to those who retired with

gratuity benefits under Republic Act No. 1616 who are now 60 years of

age or over, without requiring them to pay contributions.

Section 2

SEC. 2. The amount necessary to cover payment of Medicare

benefits to those mentioned above which is estimated at approximately

P2.3 million yearly shall be taken from the surplus of the Medicare

Insurance Fund under the administration of the Government Service

Insurance System.

Section 3

SEC. 3. Upon implementation of Program II of the Medicare

Act, the privilege of free Medicare coverage hereby granted to

government retirees shall automatically cease.

Section 4

SEC. 4. A yearly valuation of the Medicare Insurance Fund

shall be undertaken and in the event that the free coverage cannot

anymore be sustained by the Fund, the National Government shall

guarantee payment of the contributions necessary to continue the

coverage of retirees.

Section 5

SEC. 5. The free coverage extended to the above-mentioned

retirees shall not be extended to their legal dependents.

Section 6

SEC. 6. The Government Service Insurance System shall adopt

rules and regulations to implement this Decree within thirty (30) days

from the date of this Decree.

Done in the City of Manila, this 6th day of March, in the year of

Our Lord, nineteen hundred and seventy-four.

(Sgd.) FERDINAND E.

MARCOS

President

Republic of the Philippines

By the President:

(Sgd.) ALEJANDRO

MELCHOR

Executive Secretary

In order to facilitate the implementation of Presidential

Decree No. 408, the Government Service Insurance System issued GS1S

Circular No. 172, dated March 19, 1974, entitled: "Implementing Rules

and Regulations for Medicare Coverage of Government Retirees Under

Presidential Decree No. 408."