MOH committed to affordable care for elderly

17 August 2012, TODAY

About six months ago, the nursing home where my mother is staying increased its daily charge from S$70 to S$71, which is an increase of about S$30 a month.

From last month, the Goods and Services Tax was absorbed for subsidised patients. Now, the nursing home is again raising the daily charge by 31 per cent to S$93.

It said this is to be in line with the Government's "norm rates", which represent the true costs of eldercare in the intermediate and long-term care services.

This is a substantial increase.

Early this year, before the charges were increased, I wrote to the relevant authorities about the high costs of eldercare and healthcare services here. I cited nursing home and government charges for using our Medisave to defray part of the costs.

The reply was that the cost is real. In other words, we will have to pay higher and higher costs.

The Government may wish to clarify what these "norm rates" are and why charges are imposed on citizens who use Medisave to defray their medical costs.

Lau Swee Kwong

Reply from MOH

We refer to Mr Lau Swee Kwong's letter "How are 'norm rates' for nursing homes set?" (Aug 17).

"Norm rates" refer to the rate the Ministry of Health (MOH) uses to determine the basis for subsidies given to nursing home patients.

It is determined by taking into account the observed average costs of service provision among providers. An upward revision in the rate means that the Government will provide more funding for each subsidised patient.

While nursing home providers can set their fees autonomously, responsible providers do consider the impact of fee increases on patients and families. As the nursing homes' operating costs have increased over the years, fee increases may be unavoidable.

To ensure nursing home care remains affordable, the MOH increased subsidies and absorbed the Goods and Services Tax for subsidised patients last month. Around 5,400 patients, or 90 per cent of patients at MOH-funded nursing homes, have thus received more subsidies.

The subsidy enhancements have mitigated some nursing homes' fee increases. Most patients in these homes will see either no change or a decrease in out-of-pocket payment. Patients and families who still face difficulties can apply for aid through Medifund.

Mr Lau also asked about charges imposed on Medisave usage to defray medical costs. A transaction fee is charged to medical institutions to help defray administrative costs for processing Medisave claims.

It is now S$3.77 per transaction for hospitalisation and outpatient treatment for non-chronic conditions, and S$3.11 for vaccinations, breast cancer screening and treatment under the Chronic Disease Management Programme. The MOH and the Central Provident Fund Board regularly review the fee to ensure it remains appropriate and affordable.

The MOH is committed to helping our elderly age well and with peace of mind. Greater subsidy rates for home and community-based care will enable elderly Singaporeans who do not need institutionalised nursing home care to age comfortably at home and in the community.

We will also ramp up development of nursing home capacity to provide consumers more choice of providers and more competitive pricing, so that nursing home care will remain affordable to those who need it.

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