Means Testing at Restructured Hospitals

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Source: www.moh.gov.sg

Minister Khaw Boon Wan has announced the means testing framework in Parliament on 3 Mar 2008. The details are:

Patients whose income is $3,200 and below would receive full subsidy (65% for Class B2 and 80% for Class C)

Patients whose income is $5,201 and above would receive 50% subsidy for Class B2 and 65% subsidy for Class C

Patients whose income falls between $3,201 and $5,200 would receive graduated subsidies between 50-65% for Class B2 and between 65-80% for Class C.

Monthly income is defined as average monthly wage based on last available 12-month data. Patients who are economically inactive will receive full subsidy (65% for Class B2 and 80% for Class C) unless they live in property with Annual Value exceeding $11,000. The latter will receive subsidy at 50% (B2) or 65% (C)

Subsidy for Permanent Residents will be 10%-points less than citizens of equivalent income level.

The implementation date at all public hospitals would be on January 2009.

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Referring to my previous blog on Totalshield Plan benefits, the total hospital bill for the 4 days' stay came up to $2,329.17. After the government subsidy of $1,407.07 (60%), the amount payable was $922.10. There was also a charge of $80 for A&E as she arrived there in an ambulance. At 50% subsidy, the amount payable should be approx. $200 more.

But, in this case, the amount of subsidy did not matter, as the full bill was covered by her Totalshield Plan.

So, would you rather pay a known amount (insurance premium) every year, or pay an unknown amount (hospitalisation and surgical bills), should illness or injuries strike.