MEDISHIELD

MEDISHIELD:

(Average payment claim): 5.

Mdm Halimah Yacob asked the Minister for Health (a) what is the average payment per claim under MediShield, after the MediShield reforms were initiated, and how does this compare with the period before the MediShield reforms; and (b) in light of the announcement that further changes will be made to MediShield, when will these changes be implemented.

The Minister for Health (Mr Khaw Boon Wan): Mr Speaker, Sir, we reformed the MediShield in July 2005, which is almost two years ago. Mdm Halimah Yacob asked about the average payout per claim before and after the reform. For basic MediShield which covers class B2/C hospitalisation, the average payout has increased from $837 per claim to $1,274, an increase of more than 50%.

More importantly, the reform has enabled us to return MediShield to its original objective of covering large hospital bills. Basic MediShield now covers about 60% of class B2/C bills above $10,000, up from about 40% pre-reform. The average payout for such large bills has risen to $9,800 per claim from $7,300 pre-reform.

My objective is to reduce the burden on patients with large bills further, from 40% to about 20%, if it is possible. This will require an increase in premium but we will see if the required increase can remain affordable. The actuarial computations are ongoing and I hope to finalise the details by early next year so that we can bring about the next round of improvements to MediShield during 2008.

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Mdm Halimah Yacob: May I ask the Minister whether there will also be a review of the amount of deductible, because the amount of deductible was increased at the last review? There is some feedback that the amount of deductible seems to be high. Will that also be reviewed by the Minister?

Mr Khaw Boon Wan: Yes, deductible will be part of the review. My own view is that the deductible for the Basic MediShield for class B2/C, which is $1,500 and $1,000 respectively, is probably about the right level. But I have some views on the deductible for the enhanced MediShield, which I purposely set it a bit high at $3,000 because I was not sure then. But looking at the data the last few months, it suggests that maybe there is some scope to reduce that deductible perhaps by about $500. But we will settle the details early next year.

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