Essential to have enough savings for medical expenses

1) CPF flexibility

15 October 2011, Straits Times

'If the Government is serious about encouraging citizens to take tests to detect illnesses early, it is imperative that it reviews Medisave rules.'

'I agree with Mr Bennie Cheok ('Medisave withdrawal: Each case should be considered on its own merit'; Tuesday). My 70-year-old mother used her Medisave for surgery to remove a tumour at Khoo Teck Puat hospital in May. We received a bill for $375.60 after she exceeded the Medisave withdrawal limit of $1,200. When I wanted to use my Medisave to pay for the outstanding bill, my application was rejected. I was told Medisave withdrawal is capped at $1,200 regardless of whose Medisave account was used. I appealed to the CPF Board, citing the fact that we had already used a large amount of cash for pre-surgery tests, consultation and other fees, but my appeal was rejected. As Mr Cheok has pointed out, the CPF Board should be more flexible and consider each case on its own merit. In my elderly mother's case, would it not be logical to use my Medisave to cover my mother's bills? If the Government is serious about encouraging citizens to take tests to detect illnesses early, it is imperative that it reviews Medisave rules.'

Ms Lim Suyin

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2) Help working seniors pay for mandatory Medisave contributions

15 October 2011, Straits Times

HEALTH Minister Gan Kim Yong's initiatives to extend subsidies and helplines to low-income households and older Singaporeans with limited Medisave are to be lauded for their empathetic scope and as an example of the Government's aim for greater inclusiveness ('Singaporeans to get more help with medical bills'; Thursday).

The Government should also review the Medisave scheme for seniors who must contribute up to 9 per cent of their yearly net trade income.

Many seniors who are physically frail are forced to take the taxi to work as they find it hard to take the bus even if that involves only a 200m walk to the nearest stop. And cab fares take a big bite of their income.

There are also other necessities they must pay for like medication and doctors' bills. Consequently, many seniors who earn up to $1,500 a month just about get by.

The Medisave requirement leaves seniors with a Hobsian choice: pay up regardless of whether they wish to continue working, or don't pay and be out of work.

The Government should offer a matching scheme in compulsory Medisave contributions for working seniors.

Seniors should pay half or less in current rates while the Government matches it, dollar for dollar.

The $6,000 yearly net trade bottom line should be revised upwards to reduce hardship, as $500 a month is subsistence income in today's context.

Likewise, the upper limit of $18,000 yearly net trade income should be reviewed.

Yap Swee Hoo

Reply from MOH

Mr Yap Swee Hoo ('Help working seniors pay for mandatory Medisave contributions') and Ms Lim Suyin ('CPF flexibility'; both Oct 15) asked if we could be flexible in administering the Medisave scheme.

Mr Yap asked if Medisave contribution rates could be reviewed for self-employed seniors. Currently, self-employed Singaporeans aged 45 and above, who earn at least $6,000 net trade income a year, contribute only 3 per cent of their salary to Medisave.

Thus, someone earning $6,000 a year will need to contribute $180 a year. This is equivalent to contributing 50 cents a day. This money stays with the account holder for his and his family's medical expenses.

Eligible Singaporeans under the Workfare Income Supplement scheme will also receive extra contributions from the Government to their Central Provident Fund and Medisave accounts.

While we understand the financial strains faced by low-income earners, and there are schemes to help them, it is important that Singaporeans have sufficient savings for their medical expenses, especially during old age when they stop working.

For the same reason, the Ministry of Health sets a limit on Medisave withdrawal for approved hospitalisation and procedures, so that Singaporeans do not prematurely exhaust their Medisave monies and have little or none left for their old age.

The success of our health-care system hinges largely on the principle of shared responsibility between individuals and the Government. We will continue to enhance the current system, as announced by the Health Minister recently. Some changes in the pipeline include providing more help for the low- and middle-income earners and elderly group, and relooking the 3Ms scheme.

With government subsidies and assistance targeted at those who need it more, Singaporeans, especially the economically vulnerable, should be able to receive good and affordable health care.

Bey Mui Leng (Ms)
Director, Corporate Communications
Ministry of Health