What is the Senior Citizen Medicine Discount?
In the Philippines, seniors can avail of a 20% discount and an exemption from the 12% Value-Added Tax (VAT) on eligible medicine purchases. This benefit is provided under Republic Act (RA) No. 9994, also known as the Expanded Senior Citizens Act of 2010. The discount applies to both prescription and over-the-counter (OTC) drugs, and also includes medically prescribed vitamins and mineral supplements.
Types of medicines and medical items covered
The mandated discount applies to a broad range of products, ensuring comprehensive support for seniors' health needs.
- Prescription Medicines: The 20% discount and VAT exemption applies to prescribed drugs, including those for chronic conditions like hypertension, diabetes, and arthritis.
- Over-the-Counter (OTC) Medicines: Non-prescription drugs are also covered by the 20% discount, though a prescription is not required for their purchase.
- Vitamins and Mineral Supplements: The discount also covers vitamins and mineral supplements, provided they are medically prescribed by an attending physician.
- Medical and Assistive Devices: In addition to medicines, other health-related items like wheelchairs, crutches, hearing aids, and eyeglasses are also eligible for the discount when prescribed by a doctor.
How to claim the medicine discount
To claim the discount, a senior citizen or their authorized representative must present the necessary documentation at any pharmacy or hospital drug outlet.
- Prepare your identification: While an Office of Senior Citizens Affairs (OSCA) ID is the most common, any valid government-issued ID indicating the senior's age is acceptable, such as a passport, driver's license, SSS/GSIS ID, or voter's ID.
- Obtain a doctor's prescription: For prescription medicines, a licensed physician's prescription is required. The prescription must comply with the Generics Act and include the doctor's details and the generic name of the medicine. A prescription is not needed for OTC medicines.
- No more purchase booklet: The Department of Health has recently removed the requirement to present a purchase booklet for availing the medicine discount, streamlining the process for seniors.
- Transaction and receipt: Present your ID and prescription (if needed) at the pharmacy. Ensure that the official receipt reflects the original price, the 20% discount, and the VAT exemption.
Can an authorized representative claim the discount?
Yes, if a senior citizen is unable to purchase medicines personally due to a disability or other health conditions, an authorized representative can claim the discount on their behalf. This requires a few additional documents:
- A signed authorization letter from the senior citizen.
- The senior citizen’s valid ID.
- The authorized representative’s valid government-issued ID.
Discount calculation: How it works
Understanding the discount calculation is key for seniors to verify their savings. The 20% discount is applied to the VAT-exempt sales price, not the total retail price.
- Formula: Retail Price (including VAT) / 1.12 = VAT-Exempt Sales Price
- Example: For a Php 1,000 medicine purchase (before discount):
- Step 1 (Remove VAT): Php 1,000 / 1.12 = Php 892.86 (VAT-Exempt Sales Price)
- Step 2 (Apply 20% Discount): Php 892.86 x 0.20 = Php 178.57 (Senior Citizen Discount)
- Step 3 (Final Bill): Php 892.86 - Php 178.57 = Php 714.29 (Total Amount to Pay)
Comparison of senior and non-senior medicine purchases
| Feature | Senior Citizen Purchase | Regular Non-Senior Purchase |
|---|---|---|
| Discount | 20% on the VAT-exempt price | None |
| VAT Exemption | Yes (12% exemption) | No (VAT included) |
| Required ID | OSCA ID or other government ID showing age | None |
| Prescription for OTC | Not required | Not required |
| Representative Purchase | Allowed with an authorization letter and valid IDs | Not applicable |
| Double Discounts | Not allowed (cannot combine with other promos) | Can sometimes combine promotions, depending on store policy |
Conclusion
In the Philippines, senior citizens are indeed entitled to a 20% discount and VAT exemption on medicine purchases as mandated by RA 9994. Recent clarifications from the DOH and FDA have further streamlined the process by eliminating the purchase booklet requirement, making it easier for seniors to avail of their benefits. By presenting a valid government ID and a doctor's prescription for prescription drugs, seniors and their authorized representatives can access these significant savings on essential health products. This policy is a crucial component of the country's social welfare framework, designed to alleviate the financial burden of medical expenses for the elderly.
