THE revamped Medishield scheme should include everyone so that costs are lowered, risks are diversified and healthy people offset those who need medical care.

This would in turn help the poorer members who cannot afford the costs of extensive medical treatment, said NTUC Secretary-General Lim Boon Heng as he called for the Medishield scheme to be made compulsory for all.

“If we have a system whereby one group opts out for alternative insurance schemes simply because they can afford to, then the poor in Singapore will be left out. We need to take care of the lower-income,” he said.

Making Medishield compulsory can lead to lower premiums and also prevent “cherry picking” by other insurers, he stressed at the Singapore Bank Officers’ Association’s 40th anniversary dinner on Oct 9.

The labour chief’s call came as Health Minister Khaw Boon Wan prepares for a revamp of the government-run insurance scheme to ensure that medical treatment is affordable for every Singaporean.

Addressing huge bills

The planned changes also seek to address what is threatening to become a major problem: People being saddled with huge bills that they must pay out of their own pockets. Furthermore,  premiums have remained the same since Medishield was introduced 14 years ago.

Mr Lim described the situation as “dysfunctional”, and noted that about 10 per cent of patients who face increasingly large bills for serious illnesses have to pay more than 60 per cent of their bills.

“This cannot continue,” he stressed. Medishield needs to be overhauled to remove the worry and psychological burden on families who may face financial hardship or worse, bankruptcy, as a result of large hospital bills, he added.

“We need to provide Singaporeans with the peace of mind that if, for whatever reason, they require extensive medical treatment, their medical bills will be adequately taken care of. This is the original intent of Medishield and it must continue to be so,” said Mr Lim.

Affordable premiums

One of the main thrusts in the Government’s revamp of Medishield involves its premiums, which have remained unchanged since 1990. Mr Khaw, however, had earlier indicated that the increase will be less than $10 per month.

Said Mr Lim: “Lower-income workers will find this increase a significant sum, but if we do not increase the premium, then it is difficult to provide adequate cover for the big bills.”

And if the premium increase is kept low, the deductibles are likely to go up, he pointed out. Currently, the deductible amount for C class wards is $500, and for B2 class wards, $1,000.

Fortunately, patients can use their Medisave accounts to pay for these deductibles, noted Mr Lim, so most workers, having accumulated enough in their accounts, should be able to pay for the bills even if deductibles go up.

In his view, this higher deductible should be something that the lower income workers and their families can cope with.

He said: “While it will be a bit more difficult for them, the plus side is that we can free them from the worry of much higher bills, which will then be paid by the revised Medishield.”

NTUC Secretary-General Lim Boon Heng (second from left), Singapore Bank Officers’ Association President Freddie Tan (far left) and General Secretary Wee Soon Guan blowing out the candles on the cake to commemorate the union’s 40th anniversary. Looking on is SBOA Adviser Dr John Chen (second from right) and the union’s executive committee members.
Mr Lim lauded SBOA for contributing to the development of the financial services industry, for upholding a harmonious tripartite relationship and for its success in pushing for key initiatives such as wage restructuring.

Retain co-payment, avoid duplication

KEEP the principle of co-payment in Medishield to steer clear of the problems associated with pre-paid insurance, and avoid duplication of coverage, NTUC chief Lim Boon Heng has urged.

As he made this call amid plans to revamp the government-run insurance scheme, he made it clear that avoiding waste does not mean that people should opt out of Medishield if they work in organisations which provide generous medical benefits.

If an individual leaves the company, he pointed out, he would lose his coverage and benefits.
Mr Lim made this suggestion: Have a basic system that covers everyone, whether employed or not. The employer’s benefit can then ride on the national scheme for those who are working, with the employee using what the employer provides to buy additional insurance coverage from private insurers.

The labour chief also gave his support to the process of means testing which helps ensure that lower-income and less fortunate patients can receive more help. But he acknowledged that means testing was a sensitive issue which should be thoroughly discussed to see how it can be implemented.

Urging unions to provide feedback to the Health Ministry, Mr Lim said it would help develop a robust Medishield system that would provide for Singaporeans’ medical needs.

He warned Singaporeans not to have an “Other People’s Problem” attitude, and said: “We should not wait till a medical illness strikes us before we become interested in our healthcare system.”