Friday 9 March 2012

Better MediShield coverage, more subsidies for elderly & sandwiched class

By Vimita Mohandas, Channel NewsAsia, 7 Mar 2012

A key focus of the new Healthcare 2020 Masterplan is to make healthcare affordable for all Singaporeans.

For one, the health ministry will provide better MediShield coverage to help the elderly and vulnerable groups with their medical bills.

And the government will more than double its overall spending on Intermediate and Long Term Care (ILTC), by 2016.

The income criteria to qualify for help in ILTC sector will also be simplified - with relief extended to the sandwiched class.


Health Minister Gan Kim Yong said MediShield premiums are expected to rise soon.

He added that payouts under MediShield have been rising.

Between 2008 and 2011, the Medishield scheme paid out 21 per cent more in claims each year, while premiums grew by only 10 per cent each year. The last increase in premiums was in 2008.

To keep MediShield sustainable and support the extension of benefits, a 45-year-old may now see a premium increase of S$7 a month while the younger age groups will see a smaller rise.

An older policyholder aged 75 could see an increase of S$20 a month.

To offset these increases, a one-time Medisave top-up of S$400, or S$33 per month was announced in the recent Budget for all Singaporean policyholders to help cushion the impact of the premium adjustment.

And older policyholders beyond the re-employment age of 65 will also receive Medisave top-ups under the GST voucher scheme of up to S$37.50 per month which can offset the premium increases in full.

Mr Gan added that families will now find it easier to get subsidised intermediate and long term care.

This sector includes a range of home-based and centre-based healthcare services including nursing homes to help the elderly age-in-place.

It also comprises community hospitals, chronic sick hospitals, inpatient hospices and sheltered home for the ex-mentally ill.

The qualifying income criteria for subsidies will be simplified.

Previously, the means-test criteria was based on per capita family income - which includes all immediate family members of the elderly person in question.

Now, it'll be changed to per capita household income to include only those family members the elderly person is living with.

Mr Gan said: "The changes to subsidies in the outpatient care and ILTC settings will help the low income significantly but they also signal a major shift towards providing some help for the middle income.

"By raising the income cut-offs, we are extending the healthcare safety net to better support the sandwiched class, who are supporting both children and elderly parents."

And to make drugs more affordable, 20 new drugs will be added in the Standard Drug List (SDL) and Medication Assistance Fund (MAF).

The government will also set aside S$20 million under the Healthcare Productivity in Acute Services Scheme (Health-PASS) to improve efficiency and productivity in the healthcare system.

The hospitals can make use of this fund to pilot and implement projects that improve productivity and efficiency.

A similar scheme will be introduced in the ILTC sector.




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