Khaw reveals income tiers for means testing ALL Singaporeans who earn below $3,200 a month will continue to enjoy full subsidies from the Government when they are hospitalised in class B2 or C wards in public hospitals. Health Minister Khaw Boon Wan revealed the parameters for means testing on Monday after months of dialogues with Singaporeans and stakeholders. For someone with a monthly income of $3,200 and below, 80 per cent of his bill will be subsidised if he stays in a Class C ward and 65 per cent if he chooses Class B2. The subsidy decreases as your personal income increases. (See table) At the highest end, patients with a monthly income of $5,201 and above will still receive 65 per cent in subsidies in a Class C ward and 50 per cent in Class B2. All those with no income, such as housewives, retirees and children, living in HDB flats or in properties with annual values of $11,000 or less, will also get the full subsidy. This new criteria will be implemented in all public hospital from January next year. Mr Khaw explained that means testing is needed so that the bottom 20 to 30 per cent of Singaporeans can cope with rising healthcare costs through heavy subsidies in the Class B2 and C wards. He said that last year, direct subsidy for this group of patients was $1.5 billion and this will likely go up to $1.7 billion this year.
Coping with healthcare inflation
He also noted that in the past one year healthcare inflation in Singapore was a high 7.4 per cent. Mr Khaw hoped that means testing will create a greater awareness on the part of Singaporeans to subscribe to MediShield, and that those who earn more should top it up with a rider so that they can have access to higher class wards. This is so that they will not need to use Class B2 or C wards and compete with low-income patients for resources. Nominated MP Siew Kum Hong had earlier suggested that very needy patient should receive more than 80 per cent subsidy. To this, Mr Khaw replied that that many who cannot afford the current Class C subsidy get further assistance through MediFund, and some already end up paying nothing. Why use personal, not household, income? Implementation details for means testing is being worked out but Mr Khaw expressed confidence that it can be automated and hassle-free. Mr Khaw also explained why he chose to use personal income rather than per capita household income. 'I agreed with Madam Ho and Mr Siew Kum Hong that the latter is a better gauge of financial ability, but implementing such a scheme will be very costly and intrusive to every patient, given the large volume of admissions and short stays in public hospitals.' But Mr Khaw assured Singaporeans that if they feel that the simplified approach has treated them unfairly, a thorough means test will be conducted upon their appeal.
Coping with healthcare inflation
He also noted that in the past one year healthcare inflation in Singapore was a high 7.4 per cent. Mr Khaw hoped that means testing will create a greater awareness on the part of Singaporeans to subscribe to MediShield, and that those who earn more should top it up with a rider so that they can have access to higher class wards. This is so that they will not need to use Class B2 or C wards and compete with low-income patients for resources. Nominated MP Siew Kum Hong had earlier suggested that very needy patient should receive more than 80 per cent subsidy. To this, Mr Khaw replied that that many who cannot afford the current Class C subsidy get further assistance through MediFund, and some already end up paying nothing. Why use personal, not household, income? Implementation details for means testing is being worked out but Mr Khaw expressed confidence that it can be automated and hassle-free. Mr Khaw also explained why he chose to use personal income rather than per capita household income. 'I agreed with Madam Ho and Mr Siew Kum Hong that the latter is a better gauge of financial ability, but implementing such a scheme will be very costly and intrusive to every patient, given the large volume of admissions and short stays in public hospitals.' But Mr Khaw assured Singaporeans that if they feel that the simplified approach has treated them unfairly, a thorough means test will be conducted upon their appeal.
(source: http://www.straitstimes.com/print/Latest%2BNews/Singapore/STIStory_212749.html )
My Comments:
Finally the means testing will be kicking in from Jan 2009. The basic idea is to give subsidy to the needy (ie poorer) folks. If you belong to the lower income group, you will enjoy some financial help. If you belong to the middle or higher income group, you will enjoy lesser or none financial assistance. An insurance plan can help to fill this gap.
Finally the means testing will be kicking in from Jan 2009. The basic idea is to give subsidy to the needy (ie poorer) folks. If you belong to the lower income group, you will enjoy some financial help. If you belong to the middle or higher income group, you will enjoy lesser or none financial assistance. An insurance plan can help to fill this gap.
No comments:
Post a Comment