PRESIDENT Marcos being implemented as the rules and regulations for the benefit took effect on January 1, 2025.
In a statement on Thursday, the Department of Budget and Management (DBM) confirmed that Budget Secretary Amenah Pangandaman approved Budget Circular No. 2024-6, dated December 12, 2024.
This circular outlines the guidelines for granting medical allowance to qualified civilian government personnel starting in Fiscal Year 2025.
The medical allowance, which can be up to P7,000 annually, was authorized under Executive Order (EO) No. 64, s. 2024, signed by the President on August 2, 2024.
“This is a promise fulfilled,” said Pangandaman.
The DBM explained that the medical allowance would serve as a subsidy for employees to access health maintenance organization (HMO)-type benefits.
It applies to all civilian government employees, including those in national government agencies, state universities, government-controlled corporations, and local government units, regardless of their employment status.
The medical allowance may be provided as HMO coverage or in cash for employees who pay for HMO benefits, hospitalization, emergency care, diagnostics, and medicine, particularly in areas with limited access to HMO services.
Employees in geographically isolated areas or those who face challenges in obtaining HMO coverage may still qualify for cash allowances to cover medical expenses.
However, there are exclusions to the benefit, including government officials already receiving HMO-based healthcare through special laws, personnel in military and uniformed services, and employees in government-owned corporations under certain regulations.
Additionally, individuals without employer-employee relationships, such as consultants, job contract workers, and student laborers, are not eligible for the medical allowance.
In his third State of the Nation Address in July, President Marcos reiterated his commitment to providing this benefit to government workers, highlighting the inclusion of nearly P10 billion in the proposed national budget for HMO benefits for 2025.