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DBM BUDGET CIRCULAR NO. 6 s. 2024

Implementing Guidelines for the EO 64 ₱7,000 Medical Allowance

What is DBM BC 2024-6?

DBM Budget Circular No. 2024-6 lays down the rules, mechanics, and accounting requirements for the ₱7,000 annual Medical Allowance created under Executive Order No. 64, s. 2024.

Objective: To ensure the allowance is properly released, fully documented, and used exclusively for HMO-type benefits for eligible government personnel.

Who is Covered?

Civilian government personnel — regular, casual, contractual, part-time or full-time — in

• National Government Agencies (NGAs)
• State Universities & Colleges (SUCs)
• Government-Owned & Controlled Corporations (GOCCs)
• Local Government Units (LGUs)
• Local Water Districts (LWDs)

NOT covered:

• Judiciary
• Congress (Senate & House)
• Constitutional Commissions (COMELEC, COA, CSC)
• Office of the Ombudsman
• Employees already given employer sponsored HMO coverage.

Section 7 – How the Allowance Can Be Used

• 7.1.1 – Group Procurement (HMO Purchase)
  • (i) Agency procures an HMO plan for all employees (subject to procurement rules).
  • (ii) Employees’ association/cooperative procures the HMO for members using allowances remitted by the agency.
• 7.1.2 – Individual Opt-In Model
  Employees enroll individually in an HMO plan; the agency remits their allowance to the provider.
• 7.1.3 – Cash Reimbursement (Special Cases Only)
  Allowed only if:
  • Employee is in a GIDA (Geographically Isolated and Disadvantaged Area);
  • No HMO services available; or
  • HMO application was denied.

Funding & Accounting

• NGAs/SUCs: From Personnel Services (PS) allotment or Miscellaneous Personnel Benefits Fund (MPBF).
• LGUs: From local appropriations subject to Local Government Code limits.
• GOCCs: From their Corporate Operating Budget.

Agencies must maintain detailed records and observe COA rules for remittance and reporting.

Section 15 – Agency Responsibilities

Agencies and offices shall formulate and issue their own internal guidelines and procedures to effectively implement the grant of the Medical Allowance, consistent with the provisions of this Circular.

Each agency must draft clear step-by-step procedures for:

• Enrollment and remittance processing
• Coordination with HMO providers or associations
• Internal auditing and reporting

Why This Circular Matters

• Gives clear instructions for using the allowance — preventing misuse.
• Provides 3 modes to access HMO benefits (agency, association, or individual).
• Requires agency-level implementation rules (Section 15) for smooth rollout.
• Ensures COA-compliant accounting and reporting.

Bottom Line

DBM Budget Circular 2024-6 turns EO 64’s promise into a working benefit. It defines WHO is eligible, HOW the allowance can be used, and WHAT agencies must do — including drafting their own internal implementation guidelines under Section 15.

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