Means Testing

28 Feb 2005

Question No:  39  

Question

Name of the Person: Dr Tan Sze Wee, Nominated Member of Parliament

To ask the Minister for Health, in relation to the recent 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.

Reply

Reply From MOH

I thank Dr Tan for his support of means-testing. He has suggested that we use means-testing to induce Singaporeans to join MediShield. 

I am not in a hurry to introduce means-testing. My priority this year is to implement the MediShield reform and ensure that it meets its objective of easing the financial burden on Singaporeans with large hospital bills. Implementation is scheduled for July 1, and I would like to see how the reform meets the objective, before contemplating the next move on means-testing. At that point, I will assess the need for Dr Tan's suggestion. 

As for MediShield, I am confident that given sufficient explanation, Singaporeans will see its value and will not opt-out of it. Currently, 9 out of 10 working adults are covered by MediShield or its private sector equivalents. Those who are not covered are minors, non-working spouses, and employees with generous company-sponsored medical benefits. Although they are a minority, we should nevertheless try to encourage them to be insured. 

For almost all Singaporeans, affordability of MediShield is not a problem. For the small minority who find it difficult, the Government will 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 can be done when the budget position allows, as in this year.