SINGAPORE : From 1st April 2008, Medisave can be used for the outpatient treatment of two more chronic diseases - asthma and chronic obstructive pulmonary disease or COPD.

The withdrawals will be capped at S$300 per Medisave account per year and the existing deductible of S$30 and co-payment of 15 percent will also apply.

The announcement was made by Health Minister Khaw Boon Wan in Parliament on Monday.

The latest move brings to six the total number of chronic diseases which can be paid for with Medisave for outpatient treatment. The other four chronic diseases are diabetes, hypertension, lipid disorders (for example, high cholesterol) and stroke.

Some 180,000 Singaporeans are expected to benefit from the move.

Asked by the MP for Marine Parade GRC, Dr Fatimah Lateef, if the scheme could be extended to cover mental illness as well, Mr Khaw said the Ministry will keep options open.

However, he said the current focus is on key chronic diseases with established treatment protocol and measurable clinical outcome.

Mr Khaw cautioned that Medisave at current contribution rates is only designed for inpatient treatment. And extensions to expensive outpatient care are exceptions.

He added that any temptation to broaden its use liberally should be resisted, or it will be depleted prematurely.

The Health Ministry said that in the first full year of its implementation, the scheme benefited more than 91,000 patients who had withdrawn a total of S$17 million from their Medisave accounts.

More than 700 GP clinics are participating in this scheme. - CNA/ch