MediShield affordable even with fee hike

Jan 23, 2007

MediShield affordable even with fee hike

Health Minister addresses concerns over health-care schemes and costs

By Salma Khalik, Health Correspondent

MEDISHIELD will remain affordable even with the proposed premium hikes, promised Health Minister Khaw Boon Wan.

This national insurance scheme, which covers 77 per cent of the population, is due for some changes in the next few months. The purpose: to increase coverage from the current 60 per cent of big bills to 80 per cent.

The increase in premiums will not exceed $10 a month.

Mr Khaw assured Madam Halimah Yacob (Jurong GRC): 'If it's not affordable, what's the point? It may be a good plan on paper, but if most people are excluded, then it doesn't serve its main purpose.'

He told Parliament yesterday that he was more concerned about people having too little Medisave for their old age needs.

Singaporeans have an average of about $12,000 in their Medisave accounts by the time they retire. This should be enough to cover 10 'normal' hospitalisations at the subsidised B2 class ward.

With the higher withdrawal limits of $400 a day allowed from April last year, patients in the subsidised wards can use Medisave to pay almost their entire hospital bill.

The higher limit has not caused a shift of patients to more expensive ward classes, he said.

But $12,000 is not a big sum, especially with people living longer, Mr Khaw said.

This is why he has to act as the 'unpopular gatekeeper' and turn down requests from members to use Medisave to pay for a host of treatments.

Dr Lim Wee Kiak (Sembawang GRC) asked if allowing the use of Medisave for chronic illnesses would deplete people's savings.

Since late last year, up to $300 may be withdrawn from Medisave each year for outpatient treatment of diabetes, high blood pressure, high cholesterol levels and stroke.

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