The Department of Budget and Management (DBM) said civilian government workers will be receiving a medical allowance for a health maintenance organization or HMO’s services of up to P7,000 per annum starting this year.

The DBM said Thursday the allowance applies to all types of those employees working on a regular, casual, contractual, appointive or elective, full-time, or part-time basis.

‘This is a promise fulfilled.’

It said the details of the medical allowance have been shared with government agencies through Budget Circular 2024-6. This complies with Executive Order 64 signed by President Ferdinand Marcos Jr. in August last year to increase the wages of government workers.

“This is a promise fulfilled. This medical allowance is not just a benefit, it’s a vital investment in safeguarding a healthy workforce and ensuring that they perform at their best,” DBM Secretary Amenah Pangandaman said.

The beneficiaries can receive the medical allowance in the form of HMO coverage either through their government agencies or employee organizations.

Those who will avail of their own HMO providers or have already paid for medical services can receive the allowance in cash.

The DBM said this rule addresses workers’ challenges in acquiring healthcare due to the few health centers in geographically isolated areas, the limited number of HMOs, or rejected coverage by some HMO firms.

HMOs are a network of healthcare providers that offer medical insurance for a monthly or annual fee.