Press Releases
Good health protection for the Elderly too
3 September 2009
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03 Sep 2009, The Straits Times
Question
We must not write off super elderly Singaporeans by depriving them of coverage
MR JEFFREY LAW: 'Wednesday's report, 'Let's plug beyond-85 health insurance gap', is cause for concern as people aged 85 and older are not covered by health insurance amid rising health-care costs. We must not write off this group of super elderly Singaporeans by depriving them of health insurance coverage. Without coverage, these elderly citizens will be an additional financial burden to their children, who are typically in their 50s and 60s now and are planning for their own
Reply
Name of the Person: Karen Tan (Ms)
Director, Corporate Communications
Ministry of Health
Ms Salma Khalik and Mr Jeffrey Law reminded us not to “write off super elderly Singaporeans by depriving them of coverage” (“Let’s plug beyond-85 health insurance gap”, Aug 26; “Health Insurance”, Aug 29). In Singapore, nobody is written off, as healthcare coverage here is universal, regardless of age or income. In some countries where medical insurance is the main source of financing, to be uninsured is to lose medical coverage. We have evolved a very different approach based on a mixed financing system, with multiple tiers of protection, so that nobody is denied access to basic healthcare.
The first and the largest tier of protection is provided by heavy Government subsidies in Class B2 and C wards, which all Singaporeans can access. Two in three acute hospital beds are subsidized by the Government.
The second tier of protection is provided by Medisave, a compulsory medical savings account scheme which allows practically all Singaporeans to pay for their share of medical treatment without financial difficulty. Collectively, Singaporeans now have more than $42 billion in their Medisave accounts.
The third level of protection is provided by MediShield and ElderShield, which enable policyholders to risk-pool the financial risk of them suffering a major illness or a severe disability. Many middle-income Singaporeans have also supplemented their basic coverage with private insurance policies for treatment in the private sector.
Finally, Medifund provides the ultimate safety net for any Singaporean who needs greater financial protection because of his special circumstance.
On insurance coverage, we agree with the value of bringing as many into the insurance risk pool as is practicable. ElderShield offers lifetime coverage, and this means that members can claim at any age in the event of a severe disability. As for MediShield, we have been progressively raising the maximum coverage age, the last being in 2006 to 85 years old. As more Singaporeans live longer and as we gather more actuarial data, we will continue to raise the coverage age. Meanwhile, those who are above 85 remain protected by heavy Government subsidies, Medisave and Medifund.
Our national healthcare financing framework is not perfect and we will continue to refine it so that it remains relevant to meet the changing demands. Overall, it has enabled Singaporeans to enjoy a high standard of healthcare services without inflicting a heavy financial and tax burden on patients and their families or employers.