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Social WelfareHealthLocal Government
BillSBN-102020th Congress

Local Government to Earnmark a Portion of Nta for Free Medicines to Indigent Patients

In committee Filed Aug 6, 2025
◷ Where it standsIn Committee
FiledCommittee2nd Reading3rd ReadingBicamEnacted

Filed on August 6, 2025, and referred to the Committees on Local Government, Health and Demography, and Ways and Means; it has been pending in the committee since then with no recorded action.

Should you care?
Relevance to you
Moderate

The bill addresses the need for accessible medicines for low-income individuals.

Indigent patientsLocal government unitsPublic hospitalsPharmacies
Timeliness
Timely

The bill responds to the ongoing issue of high medicine prices affecting indigent patients.

Affects you ifIndigent patientsLocal government unitsPublic hospitalsCommunity health workers
Impact assessment
AI read — verify with source
Overall impact
4.3/ 10
Long title

Local Government to Earnmark a Portion of Nta for Free Medicines to Indigent Patients

Plain-language summary
AI Summary

This bill requires local government units to allocate a portion of their National Tax Allotments for providing free medicines to indigent patients in their areas.

What this bill actually requires
RequiresLocal governments must earmark a portion of their National Tax Allotments for free medicines.
RequiresLocal governments must maintain a list of indigent patients confirmed by barangay officials.
FundsLocal governments will use their National Tax Allotments for this program.
PenalizesViolators may face imprisonment of two (2) to seven (7) years.
DeadlineThis Act shall take effect within fifteen (15) days after its complete publication.
ⓘ AI-generated — verify with the source.↗ Official Senate PDF
What changes from current law

Compared with current law:

Today

Local governments do not have a mandated program for free medicines.

This bill

Local governments must set aside funds for free medicines for indigent patients.

ⓘ AI-generated comparison — verify against the bill and the cited law.
Ask this bill

The bill requires local government units to set aside a portion of their National Tax Allotments for providing free medicines to indigent patients in their localities.

Source · full text
Issue areas
Social WelfareHealthLocal GovernmentLocal Government UnitsIndigent PatientsFree medicine assistance program

✦ Dashed tags are AI-suggested nuance; solid tags follow the committee taxonomy.

Legislative history
Aug 6, 2025Senate
Introduced by Senator JINGGOY EJERCITO ESTRADA;
Sep 2, 2025Senate
Read on First Reading and Referred to the Committees on LOCAL GOVERNMENT; HEALTH AND DEMOGRAPHY and WAYS AND MEANS;
✦ AI insight

Stalled: the bill has sat in committee for over a month with no action since its referral on September 2, 2025.

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Floor activity

No floor deliberations yet — this measure has not reached plenary. Its committee-stage actions appear under Legislative history above.

Full text
SBN-1020 — verbatim textAs filed

fire ours 21.4 TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 25 AUG -6 AI0:54 SENATE RI:CEl SU dY S. No. 1020 Introduced by Senator Jinggoy Ejercito Estrada AN ACT REQUIRING LOCAL GOVERNMENT UNITS TO EARMARK PORTION OF THEIR NATIONAL TAX ALLOTMENTS FOR FREE MEDICINES TO INDIGENT PATIENTS IN THEIR LOCALITIES, AND FOR OTHER PURPOSES EXPLANATORY NOTE Studies have indicated that medicines in the Philippines are 5 to 30% higher in prices compared to other countries in Asia. This fact makes it more difficult for indigent patients to have access to needed medicines. There are many indigent patients who benefited in free hospitalization or consultation for their various ailments, but they were left on their own when it comes to procuring their prescribed medicine. Consequently, many failed to buy their medicines as prescribed and were left not cured of their illnesses. Under Section 284 of Republic Act No. 7160, otherwise known as the Local Government Code, local government units are entitled to a 40% share of the national revenue taxes, also known as the Internal Revenue Allotment (IRA), which is now referred to as National Tax Allotment (NTA). The NTA of local government units is the quick source of funding for free medicines for the benefit of indigent patients in their own localities.

The proposed bill seeks to set aside a certain percentage of the NTA annually for procurement of medicines for free distribution to indigent patients in their respective localities. This proposed measure is a poverty alleviation program to increase the access of indigent patients to unrestricted distribution of medicines. In this light, the immediate passage of this bill is earnestly sought. JINGGOY EJERCITO ESTRADA ~

221d wifer at the t TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session ) AUG -6 A10:54 SENATE RECAVES BY S. No. 1020 Introduced by Senator Jinggoy Ejercito Estrada AN ACT REQUIRING LOCAL GOVERNMENT UNITS TO EARMARK PORTION OF THEIR NATIONAL TAX ALLOTMENTS FOR FREE MEDICINES TO INDIGENT PATIENTS IN THEIR LOCALITIES, AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Local Government to Earmark a Portion of NTA for Free Medicines.

2 - It shall be the obligation of all local governments to set aside and earmark a 3 portion of their National Tax Allotments (NTA) for appropriation for free medicines to be distributed to the public hospitals, clinics, dispensaries or other outlets to indigent patients for free in their localities.

Sec. 2. Indigent Patients, defined; How dispensed. - Indigent patients are

7 those who have no visible means of income or whose income is insufficient for the 8 subsistence of his or her family as identified by the local social welfare department: 9 Provided, however, That the local government shall maintain a list confirmed by the barangay officials concerned where the indigent patient resides and to issue an identifying document to insure that the free medicines are properly dispensed to deserving recipients: Provided further, That said hospitals, clinics or dispensaries shall, as far as practicable, establish their own pharmacy or outlets within their premises and maintain sufficient stock or quantity of the most common prescribed medicines in order to immediately provide the free medicines to the indigent patients.

Sec. 3. Regular Accounting. - All pharmacies or outlets distributing or

2 dispensing free medicines shall render periodic accounting of such disbursement 3 duly posted in at least three (3) public bulletin boards specifying the patient's name, 4 address, doctor prescribing the medicine and the amount or cost of the medicine.

Sec. 4. Acts Constituting Violations of this Act; Penalty. - In addition to the

6 criminal liability incurred by persons for violating pertinent provisions of the Revised 7 Penal Code or other special laws, the following acts shall constitute a crime under 8 this Act. (a) Preparing a list or certification that a patient is indigent when he is not; (b) Submitting, preparing or altering any document to make it appear that any legitimate acquisition, purchase, disbursement or distribution had been made for free medicines when in fact there is none; (c) Diverting, concealing or using for other use or purpose, the funds for free medicines; (d) Dispensing or distributing the free medicines under this Act other than to indigent patients; (e) Selling or disposing of the free medicines; (f) Marking up or padding the purchase cost of medicines acquired under this Act; and, (g) Knowingly purchasing expired medicines or those expiring within one (1) year from date of purchase. Those found guilty of committing any of the acts above defined shall be sentenced to an imprisonment of not less than two (2) years nor more than seven (7) years.

Sec. 5. Separability Clause. - If any of the sections or provisions of this Act is

held invalid, all other provisions not affected thereby shall remain valid.

Sec. 6. Effectivity Clause. - This Act shall take effect within fifteen (15) days

after its complete publication in at least two (2) newspapers of general circulation. Approved,

Reproduced from the Senate document. The official PDF is the authoritative version.