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DSWD Transitions to Guarantee Letters for Better Medical Aid Fund Utilization

Manila: To further enhance the provision of medical assistance, the Department of Social Welfare and Development (DSWD) is transitioning from issuing cash to guarantee letters (GLs) under the Assistance to Individuals in Crisis Situations (AICS) program to ensure the proper use of government funds. Director Edwin Morata of the Crisis Intervention Program (CIP) said this is in line with President Ferdinand R. Marcos Jr.'s directives to ensure that assistance is readily accessible and available to patients.

According to Philippines News Agency, Morata emphasized that the shift to GLs addresses concerns where cash aid was sometimes used for other basic needs like food or transportation instead of the intended purpose of buying medicines. "We always wanted for the client to understand na ang pera po na ginagamit natin (that the money we use) for provision of assistance is a government fund, and I think para sa amin, judiciously kailangan namin talaga siyang gamitin ng tama (for us, we need to use it judiciously, in the right manner)," Morata said.

This move aims to ensure that all dispensed funds are supported by necessary documents and used properly, avoiding potential fraud from false documentation by pop-up clinics. Despite the transition, the DSWD official clarified that beneficiaries still have the option to receive cash assistance if they prefer it over GLs, though the department encourages the use of GLs for better fund management.

To support the transition, the Department is expanding the scope of its services by forging public-private partnerships with various institutions nationwide that accept GLs. The DSWD is now in its second year of partnership with Mercury Drugstore, which has 262 participating branches, and has recently established a similar arrangement with Generika Drugstore, which has 238 branches accepting GLs.

Negotiations are currently underway with Southstar Drug, Rose Pharmacy, and Watsons to provide more options for clients and prevent exclusivity. Additionally, the DSWD has expanded its network to include animal bite centers, blood banks, and institutions offering psychosocial services to cover a full range of medical and mental health needs.

As of May 31, the DSWD has disbursed over PHP9.22 billion worth of medical and funeral assistance through GLs to 499,978 clients under the AICS program.