MEDISHIELD (Age of coverage)

Mr Hawazi Daipi asked the Minister for Health if his Ministry has any plan to raise the age of coverage for MediShield.

The Minister for Health (Mr Lim Hng Kiang): Mr Speaker, Sir, my Ministry is aware that with longer life expectancy, there would be a need to raise the maximum coverage age for MediShield. As such, there have been regular upward revisions in the maximum coverage age. When MediShield was first introduced in 1990, the maximum coverage age was 65. This was subsequently raised to 70 in 1992, and 75 in 1996.

Although the maximum coverage age for MediShield is 75, there are other Medisave-approved insurance schemes that offer insurance coverage up till age 80. Such schemes ensure that Singaporeans have a choice of being insured beyond age 75, if they wish to do so.

Nonetheless, my Ministry would like to assure the Member that we are reviewing MediShield's maximum coverage age limit, and will raise it if necessary, to keep pace with the longer life expectancy.

Dr Lily Neo: May I ask the Minister if it is correct to say that we are pegging the age of coverage of MediShield with the life expectancy of Singaporeans. As Singaporeans' life expectancy has increased, should not this age of coverage be increased in tandem?

Mr Lim Hng Kiang: I would not use the word "pegging". I think we will review and increase the coverage age accordingly as the life expectancy of Singaporeans has also increased. But I would not use the word "pegging". It would not have a direct linkage as a peg.

Dr Lily Neo: As the life expectancy of Singaporeans has increased to about 80, why are we still sticking on to 75 years?

Mr Lim Hng Kiang: When MediShield was introduced in 1992, I do not think the life expectancy was only 70 then. So there was no implicit or explicit linkage or peg between the MediShield coverage age and the life expectancy. We want to make sure that the MediShield coverage is sensible compared to the life span of Singaporeans. So there was a general move that as the life expectancy of Singaporeans increases, we should look at the coverage and extend the coverage age of the MediShield scheme.

Dr Lily Neo: May I ask the Minister whether there is a need to review the quantum of coverage for MediShield in keeping with the rising medical costs? Is the existing coverage adequate for those who have to fall back on MediShield? Has there been a study done on this?

Mr Lim Hng Kiang: We are in the process of reviewing the coverage. But I must stress that the reason why MediShield works is that it is a very well defined catastrophic insurance scheme. We have contributions of co-insurance and also a high deductible so as to make it affordable. There is no free lunch. If you want a more extensive medical insurance coverage, then the premiums will have to go up. So we always have to strike a balance between adequate coverage as well as affordable premiums.