TRANSFER OF CPF INTO MEDISAVE

Mr Chew Heng Ching asked the Acting Minister for Labour if he will consider allowing the transfer of funds from a person's Central Provident Fund Ordinary Account into his Medisave Account to meet hospitalisation expenses, on the condition that the funds so transferred will be paid back into his Ordinary Account from his future contributions into his Medisave Account.

Mr Lee Yock Suan: Mr Speaker, Sir, I appreciate the concern of the Member for Kaki Bukit for CPF members who do not have enough CPF savings in their Medisave Accounts to meet hospitalization expenses. There is, however, already sufficient flexibility built into the Medisave scheme to cater for the needs of such members.

Firstly, a member who does not have enough savings in the Medisave Account can make use of the Medisave savings of his immediate family members. Secondly, if he opts to stay in a Class B2 or Class C ward in a Government hospital and does not have enough in his Medisave Account to pay the bill, he is allowed to settle the difference from future Medisave contributions.