Medishield Scheme For The Elderly

23 Aug 2000

To encourage Singaporean elderly, who are currently not covered by MediShield or any Medisave-approved insurance scheme , the Government will pay the basic MediShield premiums for this group of elderly, for a period of 2 years. As stated by Prime Minister Goh Chok Tong in his recent National Day Rally speech, the Government believes that by paying the basic MediShield premiums for elderly Singaporeans, rather than topping up their Medisave accounts, the same amount of money invested in MediShield or Medisave-approved insurance schemes will go a longer way in providing for their medical needs if they are hospitalised.

Introduction

The MediShield - an affordable catastrophic illness insurance scheme - was introduced in 1990. It is designed to help Singaporeans meet the medical expenses from major and prolonged illnesses which their Medisave balances may not be sufficient to cover.

Currently, almost 90% of the population within the working age band of 21 to 60 are insured under MediShield or Medisave-approved insurance schemes. However, the coverage for the elderly has not been as widespread. In fact, only half of elderly Singaporeans aged 61 and above are covered by MediShield or Medisave-approved insurance schemes

The Ministry of Health therefore recognises that there is a need to improve MediShield participation amongst the elderly Singaporeans. As it is, elderly Singaporeans tend to have lower Medisave balances, since Medisave was only introduced in 1984. Most of these elderly Singaporeans are also economically inactive and are likely to rely on immediate family members' Medisave or cash in the event of hospitalisation. Their dependence on others would be exacerbated in the event of catastrophic illnesses.

Features of the Scheme

For elderly Singaporeans aged between 61 and 69 as at 31 Dec 2000 and who are currently not covered by MediShield or Medisave-approved insurance schemes, they should apply to join MediShield or Medisave-approved insurance schemes within the window period of 4 September 2000 to 31 December 2000. To facilitate the application process, CPFB will be sending direct mailing packages to this group of elderly in September 2000. Upon receipt of the direct mailing packages, the elderly will only need to complete and mail the application form back to CPFB before 31 December 2000.

Upon application, elderly Singaporeans who have existing medical conditions may need to submit a medical report or undergo a medical examination. The Government will subsidise most of the cost of the medical examination and report. The elderly will only have to make a small co-payment of $20.

Once their applications are approved, the elderly will be eligible for 2 years of basic MediShield premiums for their age group. The first year premium will be paid as and when the applications are approved; the second year premium will be paid as and when the insurance policy is up for renewal

Those who sign up but fail to qualify for MediShield due to existing medical conditions, will receive a Medisave top-up equivalent to 2 years of basic MediShield premiums for their age group.

Those who choose to join Medisave-approved insurance schemes instead of MediShield will get 2 years of premium rebate amount equivalent to the basic MediShield premiums for their age group. They will have to pay the balance in premiums using their Medisave funds or cash. Those who are rejected will receive a Medisave top-up equivalent to 2 years of basic MediShield premiums for their age group. Similarly, applicants will only need to co-pay $20 for their medical examination or report.

Those who do not apply for MediShield or Medisave-approved insurance schemes will not receive any MediShield premium rebate or Medisave top-up.

Currently, the last entry age for MediShield is 69. As such, elderly Singaporeans who are 70 and above as at 31 Dec 2000, but not covered under MediShield or Medisave-approved insurance schemes, will automatically receive a Medisave top-up equivalent to 2 years of basic MediShield premiums for their age group . The top-up will be credited into the Medisave accounts of the elderly in two tranches (on 1 Mar 2001 and 1 Mar 2002). However, those who currently do not have a Medisave account but who wish to enjoy the Medisave top-up would need to open a Medisave account by 31 December 2000. There will be a small group of elderly who turn 70 within the window period. They can choose to apply for MediShield or Medisave-approved insurance schemes before their birthdate. If successful, they will get 2 years of basic MediShield premium rebates for their age group.

Elderly who are covered by MediShield or Medisave-approved insurance schemes

Elderly Singaporeans aged between 61 and 74 as at 31 Dec 2000, and who are currently covered under MediShield plans or Medisave-approved insurance schemes will receive a premium rebate equivalent to the basic MediShield premiums for their age group. The rebate will be paid twice, over 2 years, as and when their insurance policies are up for renewal starting from 1 Jan 2001 onwards. If their policies expire in 2002 due to age limit (i.e. they turn 75 in 2002), the second year's rebate will be paid into their Medisave account as a top-up.

Please see Annex A for a summary on the features of the scheme.

Cost to Government

The entire exercise is expected to cost the Government a total of $110 million.