PROVIDING FOR AD INTERIM MEDICARE COVERAGE FOR GOVERNMENT RETIREES

WHEREAS, the Government realizes and recognizes that the
limited life pensions of some government retirees are hardly sufficient
for their requirements;

WHEREAS, the Philippine Government Retirees Association,
Incorporated, has petitioned that they be covered free of charge under
Program I of Republic Act No. 6111, otherwise known as the Philippine
Medicare Act of 1969;

WHEREAS, retired government employees have spent the best
years of their lives in the government service;

WHEREAS, considering that the amount necessary to include
government retirees within the coverage of the Medicare Act, which is
estimated at P2.3 million yearly, can be obtained from the surplus funds
of the Medicare; and

WHEREAS, the Government Service Insurance System and the
Philippine Medical Care Commission have endorsed the petition of the
Philippine Government Retirees Association, Incorporated, favorable
under certain conditions;

NOW, THEREFORE I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution as
Commander-in-Chief of all the Armed Forces of the Philippines, and
pursuant to Proclamation No. 1081, dated September 21, 1972, and General
Order No. 1, dated September 22, 1972, as amended, do hereby decree and
order:

SECTION 1. Medicare coverage shall be extended to all
retirees under Republic Act No. 660 and to those who retired with
gratuity benefits under Republic Act No. 1616 who are now 60 years of
age or over, without requiring them to pay contributions.

SEC. 2. The amount necessary to cover payment of Medicare
benefits to those mentioned above which is estimated at approximately
P2.3 million yearly shall be taken from the surplus of the Medicare
Insurance Fund under the administration of the Government Service
Insurance System.

SEC. 3. Upon implementation of Program II of the Medicare
Act, the privilege of free Medicare coverage hereby granted to
government retirees shall automatically cease.

SEC. 4. A yearly valuation of the Medicare Insurance Fund
shall be undertaken and in the event that the free coverage cannot
anymore be sustained by the Fund, the National Government shall
guarantee payment of the contributions necessary to continue the
coverage of retirees.

SEC. 5. The free coverage extended to the above-mentioned
retirees shall not be extended to their legal dependents.

SEC. 6. The Government Service Insurance System shall adopt
rules and regulations to implement this Decree within thirty (30) days
from the date of this Decree.

Done in the City of Manila, this 6th day of March, in the year of
Our Lord, nineteen hundred and seventy-four.