DSWD TRANSITIONS TO GUARANTEE LETTERS FOR MEDICAL AID TO PREVENT MISUSE

Photo Courtesy of Department of Social Welfare and Development - DSWD / Facebook

The Department of Social Welfare and Development (DSWD) is transitioning from cash payouts to Guarantee Letters (GLs) for medical aid under its Assistance to Individuals in Crisis Situations (AICS) program to ensure funds are used properly and to reduce fraud.

Securing Aid Usage

Crisis Intervention Program (CIP) Director Edwin Morata explained on June 25, 2026, that the shift follows audits showing cash was sometimes spent on non-medical needs. By using GLs, the DSWD directly settles bills with accredited providers, ensuring aid goes toward prescribed medicine and treatment. While beneficiaries can still opt for cash, the department will no longer offer the same high financial valuation provided through the GL system.

Expanded Network

To support this shift, the DSWD has expanded its partnerships with pharmaceutical chains, including Mercury Drug and Generika Drugstore, adding hundreds of branches for GL usage. Further partnerships are being negotiated with outlets like Southstar Drug and Watsons to ensure wider access.

As of May 31, 2026, the agency has dispensed over ₱9.22 billion in medical and funeral assistance through GLs, assisting nearly 500,000 individuals.