Government will keep healthcare affordable

29 Mar 2007, The Straits Times

Question

Name of the Person: Leong Sze Hian (Mr)

Government will keep healthcare affordable

I refer to the increase in polyclinic and hospital charges.

The 80-cent increase for polyclinic fees may seem small in absolute terms, but it is a 10 per cent rise. According to the Department of Statistics' (DOS) Singapore, 1965-1995 Statistical Highlights: A Review of 30 Years' Development, government operating expenditure on health as a percentage of total government operating expenditure has declined from 9.5 per cent in 1970 to 7.8 per cent in 1980, 6.5 in 1990, and 6.3 in 2005. The distribution of government health expenditure to private health expenditure has changed from a 50/50 percentage split in 1965 to 25/75 in 2000.

HDB one-room and two-room rentals were increased in November last year. This trend of increasing fees for the lowest segment of needy Singaporeans should be curtailed or reviewed. According to the Yearbook of Statistics Singapore, the water, electricity and gas tariffs' price indices rose by 8.6, 2.8, and 4.2 per cent a year from 1995 to 2005, against inflation of just one per cent. Transport fares were increased in 2000, 2001, 2002, 2005 and 2006. The benefits of workfare and GST offsets for the lower-income may be diminished by all these increases in basic necessities and services.

While I can understand and appreciate the need to raise fees, I would like to suggest that fees for C class wards and polyclinics be kept unchanged by having perhaps higher hikes for higher class wards, because the needy should be spared the brunt of rising costs of so many increases all within a period of just one year.

Reply

Reply from MOH 

In "Fee Hikes for needy should be reviewed" (BT, March 23), Mr Leong Sze Hian stated that government operating expenditure on health as a percentage of total government operating expenditure has declined from 6.5% in 1990 to 6.3% in 2005.

Mr Leong is wrong. The correct figure for 2005 is 8.1% (as published in DOS Singapore 2006 Statistical Highlights). In absolute terms, the government operating expenditure on health increased from $0.5 billion in 1991 to $1.7 billion in 2005. In 2006, this figure increased further to $1.8 billion. 

Mr Leong also made some incorrect use of the figures on the distribution between government health expenditure and private health expenditure as he did not factor in the significant role played by employer medical benefits.

The fact is that Government healthcare subsidy has continued to rise.  In recent years, it has more than doubled from $0.6 billion in 1997 to $1.5 billion in 2006. Government will ensure that good healthcare remains affordable for all Singaporeans, through a combination of government subsidy, employer benefits, insurance and personal savings in Medisave. This is our commitment.