Medisave remains vital for healthcare needs

MOH's Reply

The Straits Times, 24 July 2015

Medisave remains vital for healthcare needs

We thank Mr Andrew Seow Chwee Guan, Mr Jeff Tan Hong Liak and Mr Raymond Lo Wan Mou for their feedback and suggestions to reduce the Basic Healthcare Sum (BHS) for pensioners and pioneers ("Reduce Medisave Minimum Sum for pioneers"; July 6, "Let some withdraw part of Medisave"; Forum Online, July 10, and "Pioneers' medical bills heavily subsidised"; Forum Online, July 10).

From Jan 1 next year, the Medisave Minimum Sum will be removed and the Medisave Contribution Ceiling will be renamed the Basic Healthcare Sum.

Singaporeans will no longer need to top up their Medisave accounts before withdrawing their Central Provident Fund monies from age 55.

We agree with Mr Seow that all government pensioners should set aside enough Medisave to help them co-pay their medical bills when they retire.

As there are different medical benefit schemes for pensioners, the BHS for each of the pension schemes is carefully calibrated, according to the benefits of each scheme. The calibrated BHS ensures that all pensioners are able to accumulate enough Medisave to pay for healthcare expenses not covered by their medical benefits.

Hence, the BHS for those pensioners who enjoy more generous benefits is lower than the BHS for non-pensioners.

The additional subsidies and benefits for pioneers in subsidised outpatient clinics of public hospitals, polyclinics and private clinics under the Community Health Assist Scheme are designed to help enhance affordability of outpatient treatments.

Sufficient Medisave is still needed to cater to hospitalisation needs and the costs of selected outpatient services, like scans.

Together, the Pioneer Generation Package and the BHS help provide peace of mind for our seniors.

Lim Bee Khim (Ms)
Director, Corporate Communications
Ministry of Health

Forum Letters

The Straits Times, 6 July 2015

Reduce Medisave Minimum Sum for pioneers

The Medisave Minimum Sum, which cannot be utilised in the account holder's lifetime except for specified purposes, now stands at $43,500. This is a substantial sum for the average man, and is excessive for two groups of people.

The first are civil service retirees.

These retirees, who are on the medical Comprehensive Co-Payment Scheme (CCS), are covered by the Government for 85 per cent of their medical expenses, meaning that they co-pay only 15 per cent.

Those on the Co-Payment on Ward (CPW) scheme pay only 20 per cent of their ward charges.

Many of these retirees are also covered by the Pioneer Generation Package (PGP), thereby doubling their protection.

The second group are pioneers who are not civil service retirees.

These folk get the benefits of the PGP and will also enjoy MediShield Life coverage. All these benefits will substantially reduce their out-of-pocket medical expenses.

Hence, given the vast differences in the need for Medisave funds for different groups, could the authorities consider lowering the Medisave Minimum Sum for these people and returning the excess funds to them?

I suggest that the reduction be done as follows:

• Civil service retirees on the CPW who are also pioneers can have their Medisave Minimum Sum reduced to, say, 10 per cent, as this group needs to pay very little out-of-pocket medical expenses.
  

• Civil service retirees on CCS who are also pioneers: Reduce to 30 per cent of the Medisave Minimum Sum.
  

• Civil service retirees on CCS who are not pioneers: Reduce to 50 per cent of the Medisave Minimum Sum.
  

• Pioneers who are not civil service retirees: Reduce to 50 per cent of the Medisave Minimum Sum.

The return of excess funds would go a long way towards relieving the financial burden of these groups of people in their twilight years.

Andrew Seow Chwee Guan

--

The Straits Times, 10 July 2015

Let some withdraw part of Medisave

I fully agree with Mr Andrew Seow Chwee Guan's rationale for asking for the Medisave Minimum Sum to be lowered for pioneers ("Reduce Medisave Minimum Sum for pioneers"; Monday).

The Minimum Sum now stands at $43,500 and not much of it will be utilised as there are strict limits on what the money can be used for.

Furthermore, pioneers receive benefits from the Pioneer Generation Package, as well as other top-ups that can be used to defray the cost of our medical bills.

Pioneers also get substantial rebates at polyclinics and at private clinics participating in the Community Health Assist Scheme.

Perhaps, pioneers who meet the Minimum Sum could be allowed to withdraw 50 per cent of the funds in their Medisave accounts to lighten their burden in their twilight years.

While the money in their Medisave accounts will be passed on to pioneers' families after their death, it would be better if the money could go some way to help fund pioneers' retirement.

Jeff Tan Hong Liak

--

The Straits Times, 10 July 2015

Pioneers' medical bills heavily subsidised

Mr Andrew Seow Chwee Guan's suggestion makes sense ("Reduce Medisave Minimum Sum for pioneers"; Monday), especially for pioneers and civil servants who already receive generous medical subsidies.

I am a retired civil servant and a member of the pioneer generation. I went to Tan Tock Seng Hospital recently for a medical consultation. The bill came to $72, but I had to pay only $18, on account of subsidies.

Thus, it doesn't make much sense of me to hold a substantial amount of money in my Medisave account, since my medical bills are highly subsidised.

If the Medisave Minimum Sum for people like me can be lowered, the excess money could be used to fund the Central Provident Fund Life scheme, on a mandatory basis, to help seniors with their daily expenses, especially since the cost of living is so high.

Raymond Lo Wan Mou