MEDISAVE BALANCES OF LOW WAGE WORKERS AND SELF-EMPLOYED

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MEDISAVE BALANCES OF LOW WAGE WORKERS AND SELF-EMPLOYED: 13.

Mdm Halimah Yacob asked the Minister for Health what measures will be taken to assist low wage workers and the self-employed to build up their Medisave balances as a recent Ministry of Health report has indicated that low wage workers and some of the self-employed have insufficient Medisave balances to meet their medical needs.

The Minister for Health (Mr Khaw Boon Wan): Mdm Halimah asked if the Government could help the self-employed and the low-income Singaporeans build up their Medisave balances. The two groups are not identical, so the approach will have to be different.

First, the self-employed. They must first help themselves by contributing regularly to their Medisave Accounts, like all other economically active Singaporeans. Not all do. In fact, less than half (43%) of the self-employed have paid

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their Medisave contributions in full. As a result, the Medisave balances of the self-employed are less than those of salaried employees. For example, for the 55-59 age group, the self-employed's Medisave balance averaged $12,500, much less than the salaried employees' equivalent of $21,500 - $12,500 versus $21,500. We should all encourage the self-employed to save regularly for their future medical needs. That is why the CPF Board has to strongly remind the self-employed to contribute to their Medisave accounts.

As for the low-income Singaporeans, the advantage of our Medisave Scheme is that even low-income workers can,

over time, save up sizeable Medisave balances. The data confirms this. For example, for workers earning less than $1,000 a month, their average Medisave balance today is $10,400, which is not a small sum. It could cover more than 10 average Class C hospitalisations.

In addition, the Government will continue to top up the Medisave Accounts of Singaporeans, whenever the budget allows for it. Meanwhile, the safety net of Medifund will also be there to help those who are unable to pay for their hospital bills despite heavy Government subsidies, Medisave and MediShield.

Mdm Halimah Yacob (Jurong): Two supplementary questions, Sir. On the self-employed, I would like to ask the Minister what other measures can be taken to encourage them to contribute regularly to the Medisave, particularly that we can see a lot more people are going into contracts for services or being self-employed.

On the Minister's point that those earning less than $1,000 have got $10,400, enough for more than 10 average Class C hospitalisations, in a lifetime, how many times are people expected to be hospitalised?

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Mr Khaw Boon Wan: For self-employed, there are various ways to encourage them. I hope Members can also help me whenever they meet their constituents, especially those who are self-employed - taxi drivers, hawkers, and so on - encourage them. Because under our system, while we heavily subsidise healthcare, we also require patients, for good reasons, to co-pay a small part of the bill. And provided you consistently and monthly save a little bit each time while you are fit and active, you will build up a sizeable account. So, please, let us help to educate them. Of course, the other extreme measure is for CPF Board to occasionally remind them, and sometimes very strongly. But it is for their own good.

As for my data of less than $1,000 per month having about $10,000-odd, this is a global average for all low-income groups. It covers various age groups. So, whether $10,000 is big or small, it depends. For the young, it is small, because they have just started saving.

As for the question on how many hospitalisations in a lifetime, the data generally suggest that each of us, on average, may incur one hospitalisation per decade. I am now 52. On average, I should have had five hospitalisations. But because I take healthy lifestyle seriously, for me it is only twice, below average. But for some people, it may be more. It varies. $10,400 is not a small sum: provided you consistently save, I think you will build up a significant amount. If despite all your efforts, you still need help, then Medifund is there to help out.