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| It
pays to have the new MediShield |
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Have you ever wondered
how you would cope if a serious illness struck home?
Would you or your family be able to afford the high
cost of medical treatment these days?
When the Government introduced MediShield in 1990,
it was meant as a basic medical insurance scheme
to help Singaporeans cope with very large hospital
bills at the B2/C Class level.
However, over time, the scheme lost its effectiveness.
The low premiums collected could not cover the payouts
and MediShield subsequently went into deficit.
Patients also found the claim limits too low: The
scheme pays only about 40% of large bills, leaving
the patients to pay the remaining 60%, which may
not be affordable to many.
Explaining the situation, Ministry of Health’s
(MOH) Healthcare Finance Director Lawrence Wong
said: “Due to inadequate adjustments to key
parameters such as deductibles and premiums, MediShield
gradually ended up covering too many hospital bills
of various sizes, including the smaller bills that
MediShield is not intended to cover. Consequently,
MediShield became less effective in protecting against
the large
hospital bills.”
Come 1 July 2005, MediShield will be reformed (for
details of the changes, see this story: Five
things you should know about the MediShield reform).
Essentially, the claim limits will be raised to
provide much higher payouts for large bills. Co-payment
will be halved from 60% of the hospital bill to
around 30%. (For an example of how the reformed
MediShield will benefit patients, refer to the table
below.)
At the same time, premiums and deductibles will
increase slightly. To help all Singaporeans cope
with the increases, the Government will top up Medisave
balances, which can be used for paying MediShield
premiums and deductibles.
Assured Mr Wong: “With regular contributions
to Medisave and the reformed MediShield, Singaporeans
should have no problems with their hospital bills
at the Class B2/C level.”
These upcoming changes to MediShield are the result
of a thorough process of research and consultation
that began as early as 2002.
MOH actively sought feedback from unions, employees,
employers, private insurers and the public through
various channels such as dialogue sessions and an
online consultation website.
It tried to address the key concerns the public
had — higher premiums and deductibles —
by keeping the increases at an affordable level
for most Singaporeans.
As for ensuring that the revised MediShield will
be sustainable in the
long run, Mr Wong said: “The key is to continue
to focus on managing medical inflation. At the same
time, patients must play their part and moderate
their expectations of public hospitals. If we succeed
on both fronts, we can avoid frequent and major
adjustments in deductibles
and premiums.”
With the changes to MediShield, MOH aims to ease
the financial burden of Singaporeans who face substantial
medical bills.
So if a serious diagnosis hits an individual and
his family, they will have greater peace of mind
knowing that medical treatment is affordable and
large hospital bills will be taken care of.
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to view bigger chart. |
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By MOH
Next: How will you be
affected? |
