Rules and Regulations on the Grant of Medical Allowance to Civilian Government Personnel

Rules and Regulations on the Grant of Medical Allowance to Civilian Government Personnel

The Budget Circular No. 2024-6 provides comprehensive guidelines for the distribution of the Medical Allowance to eligible civilian government personnel. Here’s a detailed overview of these guidelines:

Eligibility Criteria
Regular, Contractual, or Casual Positions: The allowance is available to civilian personnel who are either regular, contractual, or casual employees.

Service Duration: 

Personnel must have been in government service for at least six months in the fiscal year to qualify, including periods of leave with pay.

Exclusions: 

The policy excludes officials and employees who already receive HMO-based health care services through special laws, as well as military and uniformed personnel. It also does not apply to employees in certain GOCCs governed by other compensation frameworks.

Allowance Amount
The annual Medical Allowance is capped at PHP 7,000 per employee.

Part-time employees receive a prorated allowance based on their hours of service relative to a full-time schedule.

The total allowance for employees working part-time in multiple agencies cannot exceed the set annual maximum.

Forms of Medical Allowance

HMO-type Product Coverage: 

Employees may receive the allowance in the form of coverage under an HMO-type product, which can be arranged either by the government agency or the employee’s organization.

Cash Form: 

In circumstances where obtaining HMO coverage is impractical—such as geographic isolation or lack of local HMO services—employees may receive the allowance in cash. This cash allowance must be spent on qualifying medical expenses, such as hospitalization, emergency care, diagnostic tests, and medicines.

Implementation and Compliance

Proof of Enrollment: 

Employees who receive the allowance in the form of HMO coverage must provide proof of enrollment, such as a copy of the HMO agreement or a membership ID card.

Documentation for Cash Allowance: 

If the allowance is granted in cash, employees must submit documentation of their medical expenses to justify the use of the funds.

Annual Reporting: 

Agencies must annually report on the disbursement of the Medical Allowance, detailing the number of personnel benefiting and the forms in which the allowance was granted.

Fund Sources
Budgeting: 

The funds for the Medical Allowance are sourced from the personnel services allotments of the respective agencies. In cases of fund shortages, agencies may need to resort to the Miscellaneous Personnel Benefits Fund or other appropriations.

GOCCs and Local Government Units: 

These entities will fund the Medical Allowance from their respective budgets, ensuring that the financial impact does not adversely affect their operations or public service delivery.

These guidelines ensure a structured and fair distribution of the Medical Allowance, aiming to enhance health benefits for government employees while maintaining fiscal discipline and accountability within government financial management practices.