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Medisave may go up
28 Jan 2010
Medisave contribution may go up as the need for long-term care increases with Singapore's aging population.
Health Minister Khaw Boon Wan says the current contribution rate of 6.5 to about 9 per cent is not enough to pay for big medical bills and long-term care.
More from Claire Huang.
Medisave has been around for 25 years and was originally meant to pay for major hospital stays but it has been expanded to include some outpatient payments.
Health Minister Khaw says this isn't enough to cover long-term care bills.
"We've never priced that into Medisave contribution rate. So that's a topic almost certainly I see a need for discussion during the upcoming Budget Debate."
Speaking at the sidelines of his visit to the blood bank Mr Khaw says the increase depends on what the Members of Parliament support.
Meanwhile, more money will be injected into the common health subsidy pool for citizens.
This follows the ministry's decision to shave off health subsidies given to permanent residents by 10 percentage points.
The idea is to make a sharper distinction between the privileges a citizen is entitled to, as compared to a permanent resident.
Currently, citizens enjoy heavy subsidies in Class B2 and C wards.
PRs receive significant subsidy, while foreigners don't get any at all.
With the revision, citizens are still entitled to an 80 per cent subsidy for a Class C ward.
But PRs will be entitled to 60 per cent of cost, down from 70 per cent.
And Mr Khaw explains how the cost savings from the move will be used.
"Our data suggests that about 6 per cent of our patients are PRs, so this reduction in subsidy for them, will save us about seven million dollars a year, which we would then use to top up our growing subsidy for citizens."
The minister says it's only right for citizens to enjoy more subsidies than non-citizens.
Mr Khaw adds that the move will mean PRs have to make some adjustments like getting additional health insurance.
"If you're not already insured with a Private Shield, then you should seriously think about taking up one because your basic MediShield is really aimed at the B2, C subsidy rates." So now that your subsidy will be less, I think you need to augment it with a private Shield.
So from January next year, the subsidy for PRs in Class B2 and C wards in public hospitals as well as specialist outpatient clinics will be cut by five percentage-points.
Then in July next year, it will be cut another five percentage-points.
At the same time, the subsidy for PRs in the intermediate and long-term care sector like community hospitals and nursing homes will be cut by 5 percentage-points.
The last phase will kick in in January 2012, where another five percentage-point reduction will apply to community hospitals and nursing homes.
So by 2010, PRs will receive 20 percentage-points less healthcare subsidies than citizens.
28 Jan 2010
Medisave contribution may go up as the need for long-term care increases with Singapore's aging population.
Health Minister Khaw Boon Wan says the current contribution rate of 6.5 to about 9 per cent is not enough to pay for big medical bills and long-term care.
More from Claire Huang.
Medisave has been around for 25 years and was originally meant to pay for major hospital stays but it has been expanded to include some outpatient payments.
Health Minister Khaw says this isn't enough to cover long-term care bills.
"We've never priced that into Medisave contribution rate. So that's a topic almost certainly I see a need for discussion during the upcoming Budget Debate."
Speaking at the sidelines of his visit to the blood bank Mr Khaw says the increase depends on what the Members of Parliament support.
Meanwhile, more money will be injected into the common health subsidy pool for citizens.
This follows the ministry's decision to shave off health subsidies given to permanent residents by 10 percentage points.
The idea is to make a sharper distinction between the privileges a citizen is entitled to, as compared to a permanent resident.
Currently, citizens enjoy heavy subsidies in Class B2 and C wards.
PRs receive significant subsidy, while foreigners don't get any at all.
With the revision, citizens are still entitled to an 80 per cent subsidy for a Class C ward.
But PRs will be entitled to 60 per cent of cost, down from 70 per cent.
And Mr Khaw explains how the cost savings from the move will be used.
"Our data suggests that about 6 per cent of our patients are PRs, so this reduction in subsidy for them, will save us about seven million dollars a year, which we would then use to top up our growing subsidy for citizens."
The minister says it's only right for citizens to enjoy more subsidies than non-citizens.
Mr Khaw adds that the move will mean PRs have to make some adjustments like getting additional health insurance.
"If you're not already insured with a Private Shield, then you should seriously think about taking up one because your basic MediShield is really aimed at the B2, C subsidy rates." So now that your subsidy will be less, I think you need to augment it with a private Shield.
So from January next year, the subsidy for PRs in Class B2 and C wards in public hospitals as well as specialist outpatient clinics will be cut by five percentage-points.
Then in July next year, it will be cut another five percentage-points.
At the same time, the subsidy for PRs in the intermediate and long-term care sector like community hospitals and nursing homes will be cut by 5 percentage-points.
The last phase will kick in in January 2012, where another five percentage-point reduction will apply to community hospitals and nursing homes.
So by 2010, PRs will receive 20 percentage-points less healthcare subsidies than citizens.
