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SINGAPORE: Singaporeans who earn S$3,200 and below will get a full subsidy if they choose a Class B2 or C ward when hospitalised.
Health Minister Khaw Boon Wan unveiled in his speech the benchmark for means-testing in Parliament on Monday, after months of public feedback on the issue.
Means testing will kick in next January. The Ministry of Health (MOH) has made good its promise that it will "err on the side of generosity" when it comes to deciding how much subsidy patients get.
Mr Khaw said: "I have assured Singaporeans that we will take a practical approach to means-testing. We will be flexible at the margins to help those who may appear to be of high-income, but who have exceptional financial liabilities. We have decided to set the criteria more loosely so as to mitigate the impact on those who may be affected."
So patients earning S$3,200 and below will get the full 80 per cent subsidy if they opt for a Class C ward and a 65 per cent subsidy for a Class B2 ward.
Higher income earners will get subsidies on a sliding scale of one percentage point, depending on their income range. This is capped at 65 per cent for Class C wards and 50 per cent for Class B2 wards for those earning more than S$5,200.
Economically inactive patients will also receive full subsidies unless they live in a property with an Annual Value exceeding S$11,000.
As for Permanent Residents, their subsidies will be 10 percentage points lower than Singaporeans of equivalent income level.
The Health Minister hopes patients will subscribe to MediShield to help themselves further with the payment of their hospital bills.
He said: "Those who earn more, say S$3,000 or S$4,000 per month, should top up a rider which would enable them to use the higher ward classes. If they do so, then they will not need to use Class B2 or C and compete with low-income patients for such resources."
MOH is working out the implementation details and has assured that it will be automated and hassle-free.
As for those who feel the simplified approach has treated them unfairly, a thorough means-test will be conducted upon their appeal and will be based on the approach that is currently used by nursing homes.
In the second part of his speech, Mr Khaw said that starting 1 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. The existing deductible of S$30 and co-payment of 15 per cent will apply.
This brings to six the total number of chronic diseases under this scheme. The other four chronic diseases are diabetes, hypertension, lipid disorders and stroke. Some 180,000 Singaporeans are expected to benefit from the move.
Mr Khaw also revealed that the 19 per cent increase in healthcare budget will be used for greater investment in infrastructure development and boosting healthcare manpower.
Over the next five years, 40 per cent more doctors, nurses, pharmacists and healthcare professionals will be added through active recruitment and new scholarships for allied healthcare professionals.
For example, a new scholarship to sponsor Nanyang Polytechnic graduates for a one-year degree course will be given out. S$1.9 billion will be allocated for this manpower recruitment.
Step-down care facilities, as well as existing hospitals will also be upgraded. From April 2008, the Integrated Care Services will be upgraded into an Agency for Integrated Care.
Starting with Changi General Hospital and National University Hospital, this will equip public hospitals with resources, including additional care coordinators. This is expected to cost the government S$20 million over four years.
These coordinators will help ensure that patients who are fit for discharge, but who have multiple complex care needs, are transferred to appropriate step-down care providers.
Mr Khaw also reiterated his belief that everyone has to chip in to keep healthcare costs in check.
He said: "I will do my part to ensure that Singaporeans will continue to enjoy healthcare that is among the best anywhere in the world. But higher spending often does not guarantee better health.
"Indeed, as noted by Mr Yeo Guat Kwang, it is the basics that we must continue to focus on, which will bring about healthcare improvement: prevention and better management of chronic diseases.
"For this, I need the full co-operation from all Singaporeans: don't smoke, keep clean, don't spread bugs, don't overeat and keep active."
The Health Minister was responding to MPs who asked about the government plans to meet future healthcare needs. - CNA/vm
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