MEDISAVE (Extension of Scheme)

Dr Ang Kok Peng asked the Minister for Health, in the light of the experience in the implementation of the Medisave Scheme, whether he will consider (i) liberalizing the use of the Medisave Scheme such as to cover patients other than the immediate members of the family and private hospital charges; and (ii) setting a ceiling on the amount to be retained in the Medisave Account; and, if so, when will such extension of the Scheme be effected, and what will be the maximum amount to be retained in the Medisave Account, stating how this amount is arrived at.

Mr Yeo Cheow Tong: The philosophy behind the Medisave Scheme is that the individual should set aside a small sum of money each month in the form of compulsory savings to meet the cost of hospitalization should he or any of his immediate family fall ill and require hospitalization. It is also to ensure that the individual will have sufficient savings to meet the cost ofhospitalization in his old age.

In the light of the experience so far, and taking into consideration the balances in individual Medisave Accounts, the Government has been studying how to liberalize utilization of the Medisave Scheme without deviating from the basic objectives of the Scheme.

The following are the likely modifications:

(a) Extending the Medisave Scheme to cover expenses in private hospitals. The Government is ready to extend Medisave to private hospitals along the same line as that for the National University Hospital and to the same extent as in the Govern- ment hospitals. How soon this can be achieved will depend on how quickly the private hospitals and the private doctors can come to an agreement amongst themselves on an equitable and acceptable implementation procedure.

(b) Extension of Medisave for Grandparents. This is in line with Government policy to encourage filial piety. However, the grandparents must be Singaporeans, permanent residents, work permit or employment pass holders. Medisave Accounts will not be allowed to be overdrawn to pay the hospital bills of grandparents. We expect to implement this within the next three months.

(c) Setting a limit on Medisave Balances. Setting a limit on Medisave Balances makes good sense, as it will further encourage account holders to stay healthy. The Ministry's statisticians are presently studying what this limit should be. The quantum must be large enough to provide for the expected hospitalization expenses of the account holder's grandparents, parents, spouse and children. It must also take into account that topping up will be available in-between hospitalization episodes since the account holder will still be working.

Since this modification will require amendments to the Central Provident Fund Act, it will probably take six to nine months to implement.

(d) Extension to 100% of Class A bills in Government hospitals. The Ministry is currently analyzing the Medisave withdrawal pattern and balances to ascertain the feasibility of increasing the scale of withdrawal for Class A wards from the existing 80% to 100%. We expect the study to be completed within the next three to four months.

(e) Catastrophic Health Insurance. The Government recognizes that persons with prolonged or major illnesses may not have sufficient balances to pay their hospital bills. Hence, some form of medical insurance scheme would have to be introduced to supplement the present Medisave Scheme.

The Government is considering a catastrophic or major medical insurance scheme to cover certain major and high-cost medical conditions. The Ministry is holding discussions with the health insurers in Singapore and hopes to finalize such a scheme within the next year.

Encik Ibrahim Othman (Tanah Merah): Sir, can the Minister of State inform the House what steps does the Ministry of Health intend to take for the self-employed who are without Medisave Accounts?

Mr Yeo Cheow Tong: The Ministry has all along been encouraging members of the public who are self-employed to contribute to the CPF as well as the Medisave Account, and we will continue to do so.

Dr Ang Kok Peng (Buona Vista): Sir, will the proposed medical insurance scheme be an optional scheme or a compulsory scheme?

Mr Yeo Cheow Tong: The whole scheme is currently under study. But for such a scheme to succeed, it is very likely that it will have to be a scheme that covers the bulk of the population, that means it would in some ways have to be compulsory.