Press Releases
More Patients to Benefit from Enhanced Subsidy Framework at Community Hospitals
17 May 2009
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17 May 2009
From 1 July 2009, MOH will enhance the subsidy framework at the community hospitals (CHs) to benefit more patients. Currently, there are 4 income tiers, with incremental subsidy level of 25%-points from one income group to the next (75%, 50%, 25% and 0%). From 1 July, we will expand this to 9 income tiers, reducing the incremental subsidy level from 25 to 10%-points (75%, 70%, 60%, 50%, 40%, 30%, 20%, 10% and 0%). This way, the patients at the margin of each income tier will receive higher subsidies than now.
2. This enhancement will benefit many patients. We estimate that half of the patients will benefit from this change. No patients will be adversely impacted by the change. The savings can be significant; up to hundreds of dollars per hospitalisation (refer to Annex for examples). This is possible as MOH will raise the eligible monthly income cut-offs (for a family of 4) from $5,200 to $5,600 at the upper end, and from $1,320 to $1,440 at the lower end.
3. The changes are summarised in Table 1.
Table 1: Enhanced 9-tier subsidy framework
Table caption
Total Family Income (based on family of 4) | Subsidy Level for Citizens* |
|---|---|
≤ $1,440 | 75% |
$1,441 - $2,200 | 70% |
$2,201 - $3,000 | 60% |
$3,001 - $3,800 | 50% |
$3,801 - $4,600 | 40% |
$4,601 - $5,200 | 30% |
$5,201 - $5,400 | 20% |
$5,401 - $5,600 | 10% |
> $5,600 | 0% |
* Permanent Residents will receive 10%-point less subsidy
4. The enhanced subsidy framework will increase the MOH subvention to CHs by $4 million per year to about $30 million per year. MOH will continue to work with the CHs to ensure patients transit smoothly from the restructured hospitals, receiving the most appropriate care in a cost-effective manner at the CHs.
MINISTRY OF HEALTH
15 MAY 2009
ANNEX
Example 1
Mr. Tan, 70 years old, was transferred from a restructured hospital to a community hospital for rehabilitation. He opted for an 8-bedded ward at the community hospital and stayed for a total of 24 days. Mr. Tan has a family of 4 (including himself) and a total family income of $2,000 a month. From 1 July 2009, this is what he can expect to pay at the community hospital.
Table caption
Government Subsidy | Total Bill | MediShield | MediSave | Cash | |
|---|---|---|---|---|---|
Today | 50% | $1,800 | $640 | $1,160 | 0 |
1 July 09 onwards | 70% | $1,080 (savings of $720) | $64 | $1,016 | 0 |
Example 2
Mrs. Wong, 65 years old, was transferred to a community hospital from a restructured hospital to continue her recovery. She opted for an 8-bedded ward at the community hospital and stayed for a total of 28 days. Mrs. Wong has a family of 4 (including herself) and a total family income of $4,000 a month. From 1 July 2009, this is what he can expect to pay at the community hospital.
Table caption
Government Subsidy | Total Bill | MediShield | MediSave | Cash | |
|---|---|---|---|---|---|
Today | 25% | $2,500 | $1,200 | $1,300 | 0 |
1 July 09 onwards | 40% | $2,000 (savings of $500) | $800 | $1,200 | 0 |
Example 3
Mr. Lim, 75 years old, was transferred to a community hospital from a restructured hospital to continue her recovery. She opted for an 8-bedded ward at the community hospital and stayed for a total of 28 days. Mr. Lim has a family of 4 (including himself) and a total family income of $5,300 a month. From 1 July 2009, this is what he can expect to pay at the community hospital.
Table caption
Government Subsidy | Total Bill | MediShield | MediSave | Cash | |
|---|---|---|---|---|---|
Today | 0% | $3,500 | $2,025 | $1,475 | 0 |
1 July 09 onwards | 20% | $2,800 (savings of $700) | $1,440 | $1,360 | 0 |
Note: MediShield coverage is applicable only if the patient was discharged from an acute care hospital (both public and private) for further treatment. The MediShield payout is subject to the usual deductible and co-insurance components. If a patient was discharged from an acute care hospital, his hospital bill would have contributed towards the meeting of the MediShield deductible and patients would likely see a higher MediShield payout amount than shown in the above examples.