MEANS TESTING POLICY

MEANS TESTING POLICY

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(Impact on workers retrenched and suffering wage cuts): **

15.

Mdm Halimah Yacob asked the Minister for Health in light of the current severe economic downturn which has an impact on jobs and wages (a) what measures will his Minstry be taking to ensure that retrenched workers and those suffering from wage cuts will not be adversely affected by the new means testing policy; and (b) whether his

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Ministry will review the practice of relying on a 12-month average of earnings to determine the level of subsidy, which will affect those experiencing wage cuts.

Mr Khaw Boon Wan: Retrenched and workers suffering pay cuts should not be adversely affected by means-testing. For practical reasons, we have to rely on the average wage statistics as reported to the CPF Board during the past 12 months. However, if any Singaporean worker has experienced a significant change to his wage data in recent months, we will take that into account. We will need documentary evidence from the patients for certification purposes.

Means testing has been implemented smoothly as planned. The design parameters have been deliberately set to be generous. As a result, the vast majority of patients, 91%, were not affected by means testing at all. The other 9% belong to the higher income group and continue to be heavily subsidized, though at reduced levels compared to other patients in the lower income group.

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