MEDISAVE ACCOUNT (Removal of maximum limit)

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MEDISAVE ACCOUNT:

(Removal of maximum limit): 10.

Mdm Halimah Yacob asked the Minister for Health whether the Ministry

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will consider removing the maximum limit currently prescribed for Medisave savings so that the entire Medisave contributions can be retained in the Medisave Account instead of transferring the excess amount to the Ordinary Account.

The Minister for Health (Mr Khaw Boon Wan): Currently, Medisave accounts are subject to a Medisave Contribution Ceiling of $32,500. Once an account has reached this level, new contributions to Medisave will overflow to the member's Ordinary Account.

This policy was introduced in 1986. It is to give Singaporeans greater flexibility in using their excess Medisave monies for other needs, once they have been deemed to have saved enough for their future hospitalisation expenses at class B2 level.

Recently, we have received suggestions from some middle-income members to use their Medisave to help pay for the higher cost of hospitalisation in private hospitals and class A/B1 wards. The question is whether allowing this will undermine the adequacy of Medisave for future hospitalisation needs of Singaporeans. Perhaps we can allow this for those with healthy balances and active contributions. If we do, we may need to raise the Medisave Withdrawal Limits and the Medisave Contribution Ceiling for such members, as they are currently based on class B2 rates.

My Ministry is studying the issue carefully and will also consult the public before making a decision on this.

Mdm Halimah Yacob: Sir, when will the review be expected to complete and the new policy implemented?

Mr Khaw Boon Wan: In due course, Sir.