Medisave offset of premiums ‘reassuring’

SINGAPORE — Workers concerned over higher MediShield Life premiums should be assured by the MediShield Life Review Committee’s view that the additional 1 per cent in Medisave contributions by employers will be sufficient to pay for the increase, said Mr Lim Swee Say, the labour chief, a day after the panel’s recommendations were announced.

“The concerns will be: ‘What is the impact on the premium?’, ‘So if the premium is to go up, by how much and how are they going to pay for it?’ ... ‘Will the Government be subsidising it during the transition period at least?’, and so on,” said Mr Lim. “I think we were given assurance that most families will be able to pay for the new premiums using their Medisave without having to come up with cash.”

As for those unable to afford the premiums even after the increased Medisave contributions, they could be helped by Medifund, he added.

The National Trades Union Congress (NTUC) secretary-general was speaking to reporters after his address at the Future Leaders Summit at the NTUC Centre Auditorium yesterday. In his speech, he called on professionals, managers and executives to acquire not only deep skills, but also a second skill to prepare for job changes as the economy upgrades.

The panel’s recommendations were announced on Thursday. It proposed substantial increases in benefits for the insurance scheme that will cover all Singaporeans for large hospital bills from the end of next year.

The committee proposed removing the S$300,000 lifetime claim limit and recommended higher daily claim limits for normal and intensive-care wards in acute hospitals and for community hospitals.

The Government, which has accepted the recommendations, has said it would provide subsidies for the bottom two-thirds of households here, as well as transitional subsidies for all citizens in their first four years of MediShield Life.

Mr Lim reiterated NTUC’s concerns over duplication of insurance coverage for workers on both self-paid and employer-paid insurance schemes. The labour movement had raised this issue in April when it submitted its recommendations to the panel.

The unions believe it is now timely for them to refocus on the portable medical benefit scheme to reduce such duplication, as response to the scheme has been limited so far, said Mr Lim.

Under the scheme, a company offers a portable medical plan where the cover continues for the worker even after he retires. Ms Cham Hui Fong, NTUC’s assistant secretary-general, said in April that less than 5 per cent of firms now offer portable medical benefits.

To promote the adoption of portable medical benefits, the labour movement will step up efforts to encourage more companies to do so.

Mr Lim said: “We also hope that at some point in time, after consulting with our employers ... when we are ready with our recommendations, that we may be able to put up a strong case to the government to see how it can provide some additional incentive. So, for example, maybe to look into tax exemption to encourage more adoption.”