SINGAPORE: Medisave contribution may go up as the need for
long-term care increases with Singapore's aging
population.
Health Minister Khaw Boon Wan said the current
contribution rate of 6.5% to about 9% does not build up enough
reserves to pay for both big medical bills and long-term
care.
Medisave has been around for 25 years and was originally meant to
pay for major hospital stays but its use has since been expanded to
include some outpatient payments.
Mr Khaw said the current contribution rate is not enough to cover
long-term healthcare 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," he said.
Speaking on the sidelines of his visit to the [email protected] on
Thursday, Mr Khaw said the increase in contribution rate will
depend on what the Members of Parliament are ready to
support.
Meanwhile, more money will be injected into the common health
subsidy pool for citizens.
This follows the ministry's decision to reduce health subsidies
given to permanent residents (PRs) from January 1 next year. The
idea is to further sharpen the distinction between Singapore
citizens and PRs.
The Health Ministry said in a statement: "Citizens enjoy heavy
subsidy in Class B2 and C wards. PRs receive significant subsidy
while foreigners are not subsidised at all. The subsidy distinction
reflects the privileges of citizenship, but there is scope for
refinement."
PRs now get 10 percentage points less in subsidy than citizens.
This will go up to a 20-point difference by 2012.
With the revision, citizens are still entitled to an 80% subsidy
for a Class C ward. But PRs will be entitled to 60% of cost, down
from 70%.
And Mr Khaw explained how the cost savings from the move will be
used.
"Our data suggests that about 6% 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 said that it is only right for citizens to enjoy more
subsidies than non-citizens.
Mr Khaw added 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."
To help the PRs affected by the policy to ease into the
adjustments, the reduction will be carried out in stages.
From January 1 next year, the subsidy for PRs in the public
hospitals (Class B2 and C wards) and specialist outpatient clinics
will be reduced by 5 percentage-points.
From July 1 next year, another 5 percentage-point reduction will
apply in the public hospitals and specialist outpatient
clinics.
Also from July 1 next year, the subsidy for PRs in the intermediate
and
long-term care sector like community hospitals and nursing homes
will be reduced by 5 percentage-points.
From January 1, 2012, another 5 percentage-point reduction will
apply in the intermediate and long-term care sector.
By 2012, there will be a 20 percentage-point difference in
healthcare subsidies between citizens and PRs.
- CNA/ir