Medisave Payouts and Means-Testing

21 Jan 2008

Question No:  492  

Question

Name of the Person: Ms Eunice Elizabeth Oisen

To ask the Minister for Health (a) whether low income patients have been paying more in medical costs given that the increase in aid applicants to Medifund is greater than the increase in Medifund payouts and that medical inflation has outstripped the national inflation rate; and (b) whether means testing will result in lower medical costs for low income patients.

Reply

Reply From MOH

1. Medifund payouts to help low-income patients have been steadily increasing over the years.  In FY2006, it was $40.7 million, 4% higher than the disbursement in FY2005.

2. As medical costs increase in tandem with enhancements in standard, the cost burden on all patients, rich or poor, will similarly grow.  But we ensure that healthcare services remain highly affordable to the low-income group, through heavy direct subsidies from the government.  Class C and Class B2 subsidies of 80% and 65% of cost remain unchanged.

3. As any patient can apply to Medifund, the number of applications itself does not tell the full story, as not all cases are as deserving. The fact though is that the bulk of the applications, 98%, were approved.

4. The proposal to introduce means-testing in hospitals is intended precisely to ensure that the subsidy for the low-income group will remain protected for them, as we upgrade the services in the Class C and B2 wards.