SINGAPORE (Today), January 30, 2008:
While the implementation of means testing may not jack up MediShield premiums after all, the need to provide higher coverage for policyholders will.
MediShield premiums will increase this year, said Health Minister Khaw Boon Wan, in order for the national catastrophic hospitalisation insurance to cover 80 per cent of large hospital bills. Large bills are those over $10,000 and MediShield currently only covers 60 per cent of these.
“I need to find a nice trade-off between an increase in premium which is affordable, versus how much benefit I can encourage MediShield to pay out,” said Mr Khaw.
He was speaking after donating blood at Bloodbank@HSA (picture), a day after TODAY published his assurance that means testing would not impact premiums. The proposed hike comes three years after Mr Khaw revamped MediShield, integrating various Shield plans into one basic national tier for which premiums were raised.
Mr Khaw said feedback then had indicated a hike of $10 a month was the limit most people were comfortable with.“I don’t think the mood has changed much between then and now, so that will be my range of possibilities.”
He added that this would be “probably the last round of MediShield adjustment” in his term as Health Minister.
Currently, MediShield coverage is less than ideal due to several factors, such as a daily claim limit that does not take into account costly Intensive Care Unit stays and orthopaedic implants. The limits for both will be increased.
Mr Khaw thinks the public will be receptiveto the higher premiums. “If it’s an adjustment without new benefits, then it’s not fair ... but this comes with an increase in benefits.”
He also reminded Singaporeans to ensure they have appropriate insurance cover for their future hospital stays, especially with means testing to be implemented. While some 60 per cent of 2.8 million MediShield policyholders have enhanced private Shield plans, Mr Khaw reckoned that another 10 to 20 per cent would need more coverage.
Changes to the Medisave scheme are also in store. By March, the Chronic Disease Management Programme will be extended to the outpatient treatment of asthma and possibly chronic obstructive pulmonary disease, which affects the lungs.
And from April, cancer patients will be able to use their Medisave funds to pay for diagnostic scans — MRI, CT and PET scans — in an outpatient setting, instead of only when hospitalised. Patients can withdraw up to $600 a year from their Medisave account to help pay for the scans.
By Tan Hui Leng
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