20% discount on medicines for disabled constitutional–CA

THE Court of Appeals (CA) has declared constitutional the provision in Republic Act (RA) 9442 that grants persons with disability (PWDs) at least 20-percent discount for the purchase of medicines in all drugstores nationwide.

However, the appellate court temporarily enjoined the National Council on Disability Affairs (NCDA) from implementing its Administrative Order (AO) 1, which allows the issuance of identification cards for bona-fide disabled persons that will be valid for three years.

In a 20-page ruling penned by Associate Justice Noel Tijam, the CA’s Eleventh Division explained that while the said NCDA AO 1 is constitutional, its implementation should be deferred owing to the agency’s failure to comply with the requirements of filing the same with the Office of the National Administrative Register (Onar) as required under Section 3, Chapter 2, Book VII of the Administrative Code of 1987 and its publication in a newspaper of general circulation.

“In view of respondents’ failure to support with concrete evidence their allegation that NCDA AO 1 was filed with the Onar on October 22, 2009, and that the same has been published in a newspaper of general circulation, we hereby direct respondents to prove compliance with the filing and publication requirements of NCDA AO 1 prior to its implementation,” the CA said.

Concurring with the ruling were Associate Justices Marlene Gonzales-Sison and Danton Bueser.

The case stemmed from the petition for prohibition with application for a temporary restraining order (TRO) or writ of preliminary injunction or both filed by the Drugstores Association of the Philippines, Save More Drug Inc., Manson Drug Corp., South Star Drug Inc., and Northern Luzon Drug Corp.

The petitioners argued that the 20-percent discount granted under Section 32 of RA 9442 to PWDs is unconstitutional for failing to provide just compensation upon taking of property for public use and for violating due process.

They explained that the prescribed tax-deduction scheme under RA 9442, based on the net cost of goods, does not allow them to collect full reimbursement of the 20-percent discount granted to PWDs, thus they are deprived of their earnings.

Furthermore, the petitioners stressed that the law is arbitrary, as it does not require an applicant to present certification from a licensed private or government physician, showing that the applicant is indeed considered a PWD as described under RA 9442.

But the CA held that the grant of 20-percent discount to PWDs is a legitimate exercise of police power as what the court declared in the case of Carlos Superdrug Corp., et al. v. DWSD (Department of Social Welfare and Development), et al.

In the said case, the Court ruled that Section 4 of RA 9257, which grants 20-percent discount on the purchase of medicines to senior citizens, is a legitimate exercise of police power.

“Based on the foregoing reasoning and justification, we find that the grant of 20-percent discount on the purchased medicines of PWDs is similarly considered a valid exercise of police power of the state, hence it is constitutional,” the CA noted.

The CA also did not give weight to the argument of the petitioners that the 20-percent discount should be limited to medicines which are connected with the particular disability of the PWDs, saying that RA 9442 is intended “to give full support to the improvement of the total well-being of the disabled persons” like the Senior Citizens Act.

Aside from the purchase of medicines, RA 9442 also grants PWDs 20-percent discounts from all establishments, such as hotels and similar lodging establishments, restaurants and recreation centers.

The CA also denied the claim of the petitioners that Section 32 of RA 9442 is arbitrary and violates due process.

The appellate court stressed that while it is true that Section 32 of RA 9442 does not specifically provide a requirement of certification from a licensed physician, its implementing rules and regulations clearly stated that its implementation is subject to the guidelines to be issued by the Department of Health, NCDA and other concerned government agencies.

Thus, the CA noted that the health department  through Administrative Order 2009-0011, issued guidelines for the 20 percent discount on the purchase of medicines for the exclusive use of the PWDs. –Joel San Juan / Reporter, Businessmirror