MEDISHIELD SCHEME (Means testing)

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MEDISHIELD SCHEME:

(Means testing): 4.

Dr Tan Sze Wee asked the Minister for Health, in relation to the recent

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MediShield changes, whether his Ministry (a) will consider using the means test as an inducement to Singaporeans not to opt out of the MediShield scheme and (b) plans to use the budgetary savings brought about, in future, by the 'means testing' scheme, to offset the increase in MediShield premiums especially for the older people.

Mr Khaw Boon Wan: Sir, I thank Dr Tan for his support of means testing. I heard his first speech in this Parliament and I noticed he spent some time talking and supporting this particular idea. He has now suggested that we use means testing to induce Singaporeans to join MediShield. Actually, I am not in a hurry to introduce means testing. My priority this year is to implement the MediShield reformand to ensure that it meets its objective of easing the financial burden of Singaporeans with large hospital bills. Implementation is scheduled for 1st July and I would like to see how the scheme meets the objective before contemplating the next move on means testing. At that point, I would assess the need for Dr Tan'ssuggestion.

As for MediShield, I am confident that given sufficient explanation, Singaporeans would see its value and would not opt out of it. Currently, 9 out of 10 working adults are covered by MediShield or its private sector equivalent. Those who are not covered are minors, children, non-working spouses and employees with generous company sponsored medical benefits. We would, nevertheless, try to encourage them to be insured. For almost all Singaporeans, affordability of MediShield is not a problem. For the small minority who finds it difficult, the Government would help them adjust to the higher premiums. One way is for the Government to top up the Medisave accounts with higher amounts given to older citizens. This could be done when theBudget position allows it, as it was done this year.