What the pioneers will get
Package tackles outpatient care, Medisave and MediShield Life
By Andrea Ong, The Straits Times, 22 Feb 2014
THERE are three key components to the Pioneer Generation Package announced by Deputy Prime Minister Tharman Shanmugaratnam yesterday.
These are: outpatient care, Medisave and MediShield Life, all of which will target various aspects of health care, from prevention to catastrophic illnesses.
The measures address two big worries in health-care costs: out-of-pocket payments and the increase in premiums when MediShield Life kicks in next year.
The package, which will benefit about 450,000 Singaporean pioneers, will be for life. The benefits will also not be differentiated by income, said DPM Tharman, who is also the Finance Minister.
Outpatient care
This is for seniors who require outpatient treatment for common illnesses or chronic conditions such as diabetes.
Subsidies at specialist outpatient clinics and polyclinics
Subsidies at specialist outpatient clinics and polyclinics
Higher subsidies will be given at specialist outpatient clinics (SOCs) for the lower- and middle-income groups, regardless of age.
The current SOC subsidy is 50 per cent. This will go up to 60 per cent for the middle-income group and 70 per cent for the lower-income.
On top of this, all in the pioneer generation will get another 50 per cent off their SOC bills.
This means all pioneers stand to get a 75 to 85 per cent subsidy for treatment at SOCs, regardless of their income. They will also get an additional 50 per cent off their subsidised bills at polyclinics.
The SOC and polyclinic subsidies for pioneers will kick in this September.
Community Health Assist Scheme (CHAS)
Community Health Assist Scheme (CHAS)
CHAS provides subsidised care at private general practitioners and dental clinics for lower- and middle-income Singaporeans, who have to meet certain income or housing value criteria.
It also subsidises screenings for some conditions like diabetes, high blood pressure and colorectal cancer.
From next January, all pioneers will be placed on CHAS, regardless of income or housing type.
Those who already have a CHAS card will get additional subsidies, similar to the extra help they will get with SOC and polyclinic bills.
Pioneer Generation Disability Assistance Scheme
Pioneer Generation Disability Assistance Scheme
Pioneers with moderate to severe disabilities - or their nominated caregivers - will get cash aid of $1,200 a year under this scheme from September.
To qualify, they should require hands-on help with at least three activities of daily living.
This assistance, which will be for life, is in addition to existing schemes for the disabled elderly like the Interim Disability Assistance Programme for the Elderly and ElderShield, which have maximum payout periods.
Medisave top-ups
Annual top-ups will be given to the Medisave of pioneers, who tend to have less Medisave savings compared to younger Singaporeans.
The life-time top-ups will start this August and older groups will get a bigger sum.
The amounts range from $200 a year for those aged 65 to 69 this year to $800 for those 80 and older this year.
The top-up comes on top of the regular GST Voucher Medisave payouts for lower- and middle-income seniors.
Pioneers will also benefit from another Budget announcement which will allow elderly Singaporeans to use a portion of their Medisave more flexibly for a range of outpatient treatments.
MediShield Life subsidy
Recognising that many older Singaporeans do not have MediShield insurance, the Government will ensure all pioneers are covered by MediShield Life.
They will be insured for life and will receive a special subsidy for their MediShield Life premiums, which will increase with age.
Starting from 40 per cent of the premium at age 65, the subsidy will rise to 60 per cent of the premium at age 90.
For instance, said DPM Tharman, a 65-year-old today who lives to 85 would get an average subsidy of 50 per cent on his premiums over his lifetime.
The MediShield Life subsidies will kick in at the end of next year, when the enhanced national insurance plan is rolled out.
The MediShield Life subsidies will kick in at the end of next year, when the enhanced national insurance plan is rolled out.
The Government intends to fully cover the MediShield Life premiums for those aged 80 and older this year through a combination of premium subsidies and Medisave top-ups, said DPM Tharman.
This will apply as well to those in this age group who are currently not covered by MediShield but will be placed on MediShield Life.
Younger pioneers - like those who are 70 this year - who are already on MediShield will pay only about half of their current premiums after the premium subsidies and Medisave top-ups kick in.
Younger pioneers not on MediShield now will be brought onto MediShield Life. They will still pay less than current premiums.
$8b fund to benefit Pioneer Generation
It will help 450,000 elders with their healthcare costs for the rest of their lives plus extra health subsidies
By Lee U-Wen, The Business Times, 22 Feb 2014
It will help 450,000 elders with their healthcare costs for the rest of their lives plus extra health subsidies
By Lee U-Wen, The Business Times, 22 Feb 2014
THE government will pump $8 billion into a new fund that will help Singapore's pioneers - those aged 65 or older this year - with their healthcare costs for the rest of their lives.
This money, with accumulated interest over time, will be enough to pay for the full projected cost of the Pioneer Generation Package, including a buffer for inflation.
The cost of providing the extra healthcare benefits to the group of 450,000 recipients over their lifetime will be slightly over $9 billion in nominal terms, said Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam in Parliament yesterday as he unveiled the full details of the package.
Of the $8 billion in the fund, about half that amount will be drawn down in the first 10 years due to the age profile of these pioneers and the higher benefits that will be given to those who are older.
Mr Tharman added that all those eligible for the package - those who were at least 16 years old in 1965, and (for practical reasons) had became citizens before 1987- will get the special benefits regardless of their income level today.
"Our objective is to honour the contributions of this whole generation. However, (those) who are less well-off will benefit more where there are higher underlying subsidies for all lower-income Singaporeans," he said.
He added that it was "right and prudent" to set aside money now to pay for the package while the country has sufficient resources to do so.
"With this fund, we assure the pioneer generation that Singapore will honour our commitment to them, regardless of future economic circumstances. The fund also ensures that Budgets in subsequent years can focus on the needs and challenges of the future, for all Singaporeans," said Mr Tharman.
He explained that the $8 billion in the fund was not meant to cover the underlying healthcare subsidies that the pioneers receive together with all other Singaporeans. These, he said, would continue to be funded from future annual budgets.
As he outlined the different components of the package, Mr Tharman revealed that all pioneers would get annual top-ups of between $200 and $800 in their Medisave accounts, depending on their age group.
He assured the pioneer group that they will get subsidies to pay for their premiums under the new MediShield Life, the universal health insurance scheme that will cover all Singaporeans for life.
Older people will get more subsidies. Those aged 65 will get a 40 per cent cut, and this rate will go up to 60 per cent for those aged 90 and above.
With this combination of subsidies and Medisave top-ups, a person aged 80 or older will have his or her MediShield Life premiums fully covered. Those who are younger, around 70 years old this year, will pay about half of their current premiums.
The MediShield Life Review Committee is currently reviewing the benefits and premiums, which will be ready later this year. The subsidies will be implemented at the end of 2015, when the scheme is eventually rolled out.
Pioneers will get a 50 per cent discount off their bills at specialist outpatient clinics and polyclinics, which will bring their total subsidies to 75-85 per cent of their bills. This, said Mr Tharman, is on top of the underlying subsidies that are means-tested.
Those with moderate to severe disabilities will get an extra cash boost of $1,200 a year under a new Disability Assistance Scheme.
All pioneers will also be automatically included in the government's Community Health Assist Scheme (CHAS), which subsidises the cost of their visits to private general practitioners and dentists. In the past, only the lower and middle-income groups could qualify for this programme.
Mr Tharman recognised that there could be some who may have just missed out on the qualifying criteria for the Pioneer Generation Package but have "good claims" to be included. The government will set up a panel to assess these appeals on a case-by- case basis.
'Good to give same benefits' to all pioneers
By Andrea Ong, The Straits Times, 22 Feb 2014
By Andrea Ong, The Straits Times, 22 Feb 2014
THE benefits of the Pioneer Generation Package will not be differentiated by income, a move that was welcomed by health-care and ageing experts yesterday.
They said it recognised two aspects that the pioneer generation shared in common, regardless of socio-economic status: their worry over health-care costs in their twilight years, and the sacrifices and hardship they endured during the nation's early years.
"The package targets an important area of concern for many elderly people regardless of their social and economic background - health-care costs," said Dr Kang Soon-Hock, head of SIM University's social science core. Dr Kang, who specialises in ageing issues, was particularly impressed with the move to reduce out-of-pocket costs for the elderly in outpatient care.
On top of increased subsidies at specialist outpatient clinics (SOCs) for lower- to middle-income Singaporeans, the pioneer generation will get an extra subsidy of 50 per cent at SOCs and polyclinics, which will likely mean a "visible reduction" in their bills.
Geriatrician Reshma Merchant said the absence of means-testing in the package honours the fact that "our pioneer generation, regardless of socio-economic status, have gone through hardship and contributed significantly during early years to the country".
Also, most pioneers have retired and do not have a steady income, said the head of general medicine at National University Hospital.
Observers also praised the package for spreading its net to cover preventive and primary health-care as well as MediShield Life for catastrophic illnesses.
Besides the SOC and polyclinic subsidies, all pioneers - regardless of income or housing type - will be placed on the Community Health Assist Scheme (Chas), which subsidises care at private GPs and dental clinics and screenings for some conditions like diabetes.
They will also receive annual Medisave top-ups for life. This year's Budget will also let elderly Singaporeans use a portion of their Medisave more flexibly across a range of outpatient treatments.
Health economist Phua Kai Hong said giving help in outpatient care is an important first step as it would benefit almost all the elderly. "If you don't provide the support for SOC as well as outpatient care, then you're basically waiting for people to exhaust all their Medisave and fall back on MediShield."
Dr Merchant said the pioneers tend to be cost-conscious because of past hardship and often delay seeking medical help. "Hopefully with (the package), they will seek help earlier, undertake more preventive measures which will improve their quality of life."
Help will also be given to the disabled elderly or their nominated caregivers with a cash aid of $1,200 a year. Dr Lam Pin Min, who chairs the Government Parliamentary Committee for Health, lauded the gesture to help seniors and recognise caregivers.
But SIM University's head of gerontology Kalyani Mehta hopes the Government will bear the cost of assessing the elderly for this scheme "to relieve the families' expenses and encourage the families to come forward".
Dr Lam also praised the "generous subsidies" on MediShield Life premiums. Together with the Medisave top-ups, the subsidies will fully cover the premiums for a pioneer who is aged 80 and older this year.
Dr Phua, however, cautioned that the premiums for Integrated Shield plans would be an area to watch carefully.
Dr Jeremy Lim, head of health and life sciences practice at consulting firm Oliver Wyman, said it is necessary to reduce health-care spending as higher costs would "dampen the benefits" of the new measures.
Noting that the monies are mainly channelled through Medisave, he called for special effort to ensure that those without Medisave accounts still get help.
Dr Lim also stressed the need for the health-care delivery system to be prepared for more people seeing the doctor, with the rise in government funding.