Pioneer Generation package is “all healthcare” only?
I refer to the articles “450,000 seniors aged 65 or older to get more healthcare subsidies, Medisave topups” (Straits Times, Feb 9) and “450,000 seniors eligible for Pioneer Generation Package: PM Lee” (Channel NewsAsia, Feb 9).
Pay lower premiums?
The latter states that “The premiums for MediShield Life will be lower than that of MediShield for the pioneer generation, and the sums are being worked out”
So, who pays for it?
- Does this mean that the fundamental issue of the MediShield Life scheme -that it is entirely funded by the premiums collected from policyholders will remain unchanged?
Does it mean that the younger generation, that is those below age 65 may be footing the bill for the lower premiums that those aged 65 and above will pay in the future?
More out-patient subsidies?
As to “For outpatient treatment, they will enjoy extra subsidies at polyclinics, specialist outpatient clinics and general practitioners (GPs) under the Community Health Assist Scheme”
Still not spending a single cent on healthcare?
- Does it mean that in totality – the Government from a cashflow perspective – may continue to still not be spending a single cent on healthcare? Will total Medisave contributions and annual interest in a year, continue to be more than total outflows by way of total Government healthcare operating and development expenditure, Medisave top-ups, Medisave withdrawals for direct medical expenses, withdrawals to pay MediShield Life premiums, Medifund annual grants to needy patients, etc?
And we are not even talking about the $60 billion in Medisave accounts that is in a sense, funds that are available for the Government to utilise?
Medisave top-ups may be used to pay for rising costs?
With regard to “They will also get annual top-ups to their Medisave accounts, which can help pay for MediShield Life premiums”
- Will the issue of the top-ups being easily wiped out by rising medical costs – leaving insufficient or no funds in the medisave account to pay for the MediShield premiums persist?
Unless the Medisave top-ups are designated as “can only be used to pay for MediShield Life premiums only”?
Medisave contribution rate will increase?
Finally, will Medisave contribution rates continue to increase, as has been so hinted repeatedly?
Leong Sze Hian
*Leong is the Past President of the Society of Financial Service Professionals, an alumnus of Harvard University, has authored 4 books, quoted over 1500 times in the media , has been host of a money radio show, a daily newspaper column, Wharton Fellow, SEACeM Fellow, columnist for Malaysiakini, executive producer of the movie Ilo Ilo (24 international awards). He has served as Honorary Consul of Jamaica and founding advisor to the Financial Planning Associations of Brunei and Indonesia. He has 3 Masters, 2 Bachelors and 13 professional qualifications.