Increase in Medisave Withdrawal Limits

Mr Sitoh Yih Pin asked the Minister for Health whether the Ministry will consider increasing the withdrawal limits on the use of Medisave so as to allow for a large utilisation of Medisave balances.

Mr Gan Kim Yong: Currently, Medisave is designed primarily to help patients pay for hospitalisation expenses and selected outpatient treatments. It is accumulated over the course of one's working life, while the bulk of the healthcare expenses tend to occur when one is older. As post-retirement healthcare costs can vary significantly, we need to strike a careful balance between allowing greater use of Medisave to improve current affordability and the risk of premature depletion.

Medisave withdrawal limits today are generally sufficient to cover the bulk of healthcare bills in Class B2/C wards in public hospitals, after taking into account Government subsidies and insurance. For instance, more than eight in 10 subsidised cases pay less than $100 out-of-pocket for their hospital bill. We have recently revised the annual withdrawal limit for selected outpatient treatment to $400. Setting withdrawal limits judiciously to maintain some cash copayment also helps to prevent over-consumption and moderate cost escalation. Those who still have difficulty paying for their healthcare bills are helped through Medifund and other financial assistance schemes.

MOH regularly reviews the Medisave scheme, including the scope of usage and withdrawal limits, to ensure its continued relevance.