The Department of Social Welfare and Development (DSWD) is transitioning its Assistance to Individuals in Crisis Situations (AICS) medical aid from cash payouts to guarantee letters (GLs) to ensure funds are used strictly for medical needs.
DSWD officials said the shift aims to improve accountability and ensure that assistance is directly used for the purchase of medicines and other medical requirements, in line with government directives to make services more accessible and properly targeted.
“Gusto po talaga niyang gawin na ang assistance under the Assistance to Individuals in Crisis Situation is maibigay natin for the right purpose, for the person, for the right intervention,” said Crisis Intervention Program Director Edwin Morata during a media forum on Thursday.
He said the previous cash-based system sometimes allowed funds to be diverted to other basic needs such as food or transportation.
“We always wanted for the client to understand na ang pera po na ginagamit natin… is a government fund, and it must be used properly,” Morata said, adding that the system also aims to reduce fraudulent claims and irregular documentation.
The DSWD clarified that beneficiaries may still opt for cash assistance in certain cases, but said guarantee letters are now the preferred mechanism for medical aid disbursement.
“Pwede naman mag-negotiate ng cash to guarantee letter or guarantee letter to cash… pero mas preferred namin yung una,” Morata said.
To support the transition, the agency is expanding partnerships with private service providers nationwide.
DSWD said it is in its second year of partnership with Mercury Drug, which has 262 participating branches, and has recently partnered with Generika Drugstore, which has 238 branches accepting GLs.
It is also in talks with Southstar Drug, Rose Pharmacy, and Watsons to widen client options and avoid exclusivity arrangements.
Beyond pharmacies, the program now covers hospitals, diagnostic centers, animal bite treatment centers, blood banks, and psychosocial service providers to address broader medical and mental health needs.
As of May 31, the DSWD has released more than P9.22 billion in medical and funeral assistance under AICS, benefiting 499,978 clients through guarantee letters.