MEDISHIELD (Assistance in payment of premiums)

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MEDISHIELD:

(Assistance in payment of premiums): 14.

Dr Lily Neo asked the Minister for Health whether the Government will consider providing assistance to those who cannot afford the premiums for MediShield.

The Minister for Health (Mr Khaw Boon Wan): Sir, when designing the MediShield scheme, one key consideration is to ensure that the premiums will be affordable to the vast majority of Singaporeans. As benefits have to be funded by premiums, we have to manage the desire for maximum benefits against the need to keep premiums low.

The final package that I announced last month is what I believe to be the most optimal, taking into account the need for such trade-offs. That is why I have to resist the demands for MediShield to kick in at lower deductibles, or to offer loyalty discounts to younger policyholders.

Nevertheless, there may be some elderly Singaporeans who find the premiums unaffordable, especially if they had not contributed regularly to their

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Medisave Accounts in the past. To help these people, the Government has, from time to time, topped up the Medisave balances of Singaporeans, with higher amounts to the older citizens. We will continue to do so if the budget position allows. In fact, this is one of my budget wishes for this year. I hope I will be lucky!

Dr Lily Neo: Sir, in the recent MediShield revamp, there was no change to the age limit claim for MediShield. Will the Minister consider raising this age limit claim beyond the age of 80, in view of our ageing population?

Mr Speaker: Ten seconds, Mr Khaw.

Mr Khaw Boon Wan: We do review the maximum cut-off age every now and then. I think it used to be 70, then raised to 75 and, a few years ago, to 80. As life expectancy increases, we will take that into account. But in the market place, there are insurance policies which cover beyond 80. NTUC Income is one of them, and I would rather let the elderly people decide. At that age, they should be quite wise to decide for themselves whether they want to pay extra high premiums, because some of these products are not cheap.

3.00 pm

Mr Speaker: Order. End of Question Time.

[Pursuant to Standing Order No. 22(3), Written Answers to Question Nos. 16-17, 23-24, 26 and 28-29 on the Order Paper are reproduced in the Appendix*. Question Nos. 15, 18-22, 25, 27 and 30-32 have been postponed to the sitting of Parliament on 28th February 2005.]

• Cols. 701-710.