DepEd finalizing guidelines for 7K medical allowance
DepEd finalizing guidelines for 7K medical allowance; HMO system eyed for comprehensive healthcare
May 17, 2025 – The Department of Education (DepEd) is in the final stages of preparing the guidelines for the implementation of the P7,000 annual medical allowance for its personnel, as indicated in a letter dated April 28, 2025, signed by Undersecretary Wilfredo E. Cabral. The allowance, mandated by Executive Order No. 64 and detailed in Department of Budget and Management (DBM) Circular No. 2024-6, aims to provide a health subsidy to eligible government personnel.
The letter, addressed to Mr. Benjo G. Basas, National Chairperson of the Teachers' Dignity Coalition, acknowledges inquiries regarding the status of the medical allowance. It clarifies that the allowance is intended to help government personnel avail of Health Maintenance Organization (HMO)-type benefits.
While the circular from DBM outlines the provision of this allowance starting in Fiscal Year 2025, the DepEd recognizes challenges in the immediate implementation for all personnel due to the sheer number of potential beneficiaries. As a result, the Department is exploring an HMO-based system as an opportunity to offer a more comprehensive and inclusive healthcare package.
Currently, the guidelines are undergoing finalization. Upon approval and release, DepEd will conduct a series of orientations for concerned offices in the field to ensure efficient and orderly implementation of the medical allowance.
This development follows calls from groups like the Teachers' Dignity Coalition for the swift release of the allowance, especially with the end of the school year approaching and the requirement for teachers to undergo mandatory medical examinations. While acknowledging the desire for immediate cash disbursement to address current medical needs, the DepEd and the Teachers' Dignity Coalition both recognize that an HMO system could provide a more sustainable and comprehensive long-term healthcare solution for DepEd employees. The DepEd has been urged to expedite the selection of a reputable HMO provider with broad coverage.
The P7,000 medical allowance is a significant increase from the previous P500 medical examination allowance and is seen as a step towards fulfilling the provisions of the Magna Carta for Public School Teachers. The allowance can be provided through the agency’s selected HMO coverage or as cash reimbursement for employees who opt for their own HMO plans or have incurred medical expenses.
While the circular from DBM outlines the provision of this allowance starting in Fiscal Year 2025, the DepEd recognizes challenges in the immediate implementation for all personnel due to the sheer number of potential beneficiaries. As a result, the Department is exploring an HMO-based system as an opportunity to offer a more comprehensive and inclusive healthcare package.
Currently, the guidelines are undergoing finalization. Upon approval and release, DepEd will conduct a series of orientations for concerned offices in the field to ensure efficient and orderly implementation of the medical allowance.
This development follows calls from groups like the Teachers' Dignity Coalition for the swift release of the allowance, especially with the end of the school year approaching and the requirement for teachers to undergo mandatory medical examinations. While acknowledging the desire for immediate cash disbursement to address current medical needs, the DepEd and the Teachers' Dignity Coalition both recognize that an HMO system could provide a more sustainable and comprehensive long-term healthcare solution for DepEd employees. The DepEd has been urged to expedite the selection of a reputable HMO provider with broad coverage.
The P7,000 medical allowance is a significant increase from the previous P500 medical examination allowance and is seen as a step towards fulfilling the provisions of the Magna Carta for Public School Teachers. The allowance can be provided through the agency’s selected HMO coverage or as cash reimbursement for employees who opt for their own HMO plans or have incurred medical expenses.
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