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12 Nov 2007
Question No: 443
Question
Name of the Person: Mdm Halimah Yacob
To ask the Minister for Health (a) what is the average payment per claim under MediShield, after the MediShield reforms were initiated, and how does this compare with the period before the MediShield reforms; and (b) in light of the announcement that further changes will be made to MediShield, when will these changes be implemented.
Reply
Reply From MOH
We reformed the MediShield in July 2005. Mdm Halimah Yacob asked about the average payout per claim before and after the reform. For basic MediShield which covers Class B2/C hospitalization, the average payout has increased from $837 per claim to $1,274, an increase of more than 50%.
More importantly, the reform has enabled us to return MediShield to its original objective of covering large hospital bills. Basic MediShield now covers about 60% of Class B2/C bills above $10,000, up from about 40% pre-reform. The average payout for such large bills has risen to $9,800 from $7,300 pre-reform.
My objective is to reduce the burden on patients with large bills further, from 40% to about 20%, if possible. This will require an increase in premium but we will see if the required increase can remain affordable. The actuarial computations are on going and I hope to finalise the details by early next year so that we can bring about the next round of improvements to MediShield during 2008.