ST 16/2/2006: Khaw: Don't overstretch Medisave

Straits Times 16/02/2007
Khaw: Don't overstretch Medisave, Minister reveals more than 6 in 10 S'poreans who died had less than $2,500 in the account
Lee Hui Chieh

SINGAPOREANS who died after the age of 65 had an average balance of just $3,500 left in their Medisave account, Health Minister Khaw Boon Wan said yesterday.

In fact, more than 60 per cent of all Singaporeans who died - regardless of their age - had less than $2,500 of their compulsory medical savings left.

Mr Khaw cited these figures in Parliament as he cautioned against calls for Medisave to be extended to cover a wider range of medical expenses.

'My concern is that most Singaporeans undersave for Medisave,' he said.

Set up 22 years ago, Medisave was originally designed to help people pay hospital bills.

In October last year, its scope was expanded to cover regular outpatient treatment of chronic diseases. Those who have a stroke, diabetes, high blood pressure or high cholesterol may dip into their Medisave for this purpose.

Yesterday, Mr Christopher de Souza (Holland-Bukit Timah GRC) asked if Medisave could be used for peripherals related to serious illnesses or hospitalisation.

Nominated MP Kalyani Mehta asked if caregivers of the chronic sick who tend to them at home could use Medisave to pay for respite care - medical help to take over caregivers' tasks temporarily so they can take a break.

Mr Khaw's reply: 'Medisave is not a solve-all for all medical problems. It is highly focused and for it to be effective, it must stay focused.'

He said the current monthly Medisave contribution rate was set based on the premise that it was for hospitalisation costs.

'If, however, you want Medisave to be also used for this and for that, then clearly the contribution rate of 6 per cent has to be raised to a higher level, which I don't think is advisable,' he added.

Go homeboy, go!