MEDISAVE ACCOUNTS OF PERSONS AGED 55 AND ABOVE

Dr Dixie Tan asked the Acting Minister for Health (a) what are the amounts in the Medisave accounts of persons aged 55 years and above; and (b) whether these amounts are adequate for average expected hospitalisation expenses for these persons.

Mr Yeo Cheow Tong: The average amount in the Medisave account of persons aged 55 years and above is currently $2,682 per account. Please see Appendix 1 for breakdown of the Medisave accounts. The low balance is to be expected as the contribution period for persons in this age group has been short since Medisave Scheme was only introduced in 1984.

Based on the rate of hospitalisation of those age 55 and above, the total hospitalisation expenses that one is expected to incur at subsidised wards in Government hospitals is estimated to be $10,000, taking into account future increases in hospitalisation cost.

The average balance of $2,682 therefore cannot cover all the hospitalisation needs of the people in this age group. In most cases they will need to be supplemented by their children's Medisave accounts.

The average balance in the Medisave accounts of those 55 and above has increased by 35% since 1985, or about 12% a year. As the Medisave Scheme matures, the average Medisave balance of those aged 55 and above will improve with each cohort corresponding to the longer period of contribution.

Appendix 1 DISTRIBUTION OF MEDISAVE ACCOUNTS BY BALANCE GROUPS FOR THOSE >= 55 AS AT DECEMBER 1988 ____________________________________________________________ Balance Groups No. of Accounts Proportion ($) < $1000 46,682 39.4 1000 - 4999 45,848 38.6 5000 - 6999 11,119 9.4 7000 - 9999 10,197 8.6 >= $10,000 4,795 4.0 ____________________________________________________________ 118,641 100.0 ____________________________________________________________ Annexes - ENROLMENT OF PUPILS IN PRIMARY AND SECONDARY SCHOOLS BY LANGUAGE MEDIUM, CHOICE OF CL1/CL2 AT PSLE IN 4 PRIMARY SCHOOLS (Cols. 567 - 570) Annex - RELIGIOUS KNOWLEDGE OPTIONS AT SECONDARY 3 (Cols. 571 - 572)