Medisave is a national medical savings scheme introduced in April 1984 whereby part of our income is put into Medisave Accounts for the main purpose of meeting the future hospitalization needs of our own or our immediate family.

Under the scheme, every employee contributes 6.5-9% (depending on age group) of his monthly salary to a personal Medisave account.

A small portion (subject to yearly/monthly cap and/or deductible) can also be used for certain outpatient treatment and/or chronic diseases. This list includes:

• Hepatitis B vaccination
• Hyperbaric Oxygen Therapy
• Desferrioxamine Drug and Blood Transfusion for Thalassaemia
• Intravenous Antibiotic Infusion (at certain hospitals)
• Rental of Devices for Long-Term Oxygen Therapy and Infant Continuous Positive Airway Pressure Therapy
• Immunosuppressant Drugs for Organ Transplant
• MRI, CT and PET scans (for cancer patients only and as prescribed by doctors)
• Pneumococcal vaccination for children
• Diabetes
• Hypertension
• Lipid disorders
• Stroke
• Asthma
• Chronic Obstructive Pulmonary Disease (COPD)
• Schizophrenia and Major depression

Recently, Minister Lim Hwee Hua suggested to our Health Minister Khaw Boon Wan that Medisave be used to help pay for mammograms as our breast cancer screening rate is still low. Encouraging people to go for early screening can help prevent costly medical bills subsequently.

Mr Khaw mentioned that he is sympathetic to the idea, but he also wants to be sure that the solution is sustainable and will not cause future problems.

The main purpose of Medisave is to help pay for costly hospitalisation. That tends to happen at old age. Small outpatient bills should be paid out of pocket in cash otherwise the Medisave account might be depleted prematurely.

Therefore, the proposal will be studied at length before any policies are changed.

On another occasion last week, Mr Khaw also highlighted that the current contribution rate of 6.5% to about 9% does not build up enough reserves to pay for both big medical bills and long-term care.

Medisave was originally meant to pay for major hospital stays only but its use has since been expanded to include some outpatient payments.

Mr Khaw said the current contribution rate is not enough to cover long-term healthcare bills and is likely to have to go up. The increase in contribution rate will depend on what the members of parliament are ready to support.

Health Minister Khaw Boon Wan gave a hint of what is to come when he mentioned that more needs to be done to better serve Singapore’s aging population.

This includes:

• increasing the Medisave contribution rate from the current 6-9.5%
• enhancing payouts for Eldershield to $800/month from the current $400/month (this will also mean increasing the premiums)
• providing more funding for the Medifund-silver scheme
• introducing the 3E framework over the next 15-20 years – Elderfund, Eldersave and Eldershield

With the wide array of schemes available, it is a challenge for anyone to know all the schemes, not to mention keeping track of all the changes.

For starters, just do a permutation on the following terms:

• medi, elder
• save, shield, fund

The government should seriously consider setting up a giant information database wikipedia style. Frills and graphics might be good but when it comes to the crunch, what most people really want is to be able to find the information we need in the shortest possible time.

One example is the current CPF website which is simply hard to navigate. Is it only me or do you also feel the same way?

Read the entire interview with Khaw Boon Wan here:

Medisave Contribution to Rise

Medisave can be used to pay for the outpatient treatment of two more chronic diseases, schizophrenia and major depression, starting from 1st October 2009.

Schizophrenia and Major Depression are chronic mental diseases that can potentially cause significant burden and disability.  Schizophrenia, which affects nearly 1% of the population, is a chronic psychiatric disorder that requires long-term medication and treatment.  Major Depression is a more serious form of depression and may cause significant distress or impairment in the patients’ daily activities, but is highly treatable once diagnosed.

In 2006/2007, the Chronic Disease Management Programme (CDMP) was launched to allow Medisave for the treatment of diabetes, hypertension, lipid disorders (e.g. high cholesterol) and stroke. In April 2008, asthma and chronic obstructive pulmonary disease (COPD) were added.

Medisave withdrawal rules under the CDMP remains unchanged: withdrawals are capped at $300 per Medisave account per year. The existing deductible of $30 and co-payment of 15% will also apply – which means the first $30 and subsequent 15% of the bill would have to be paid using cash.

Some updates on recent and upcoming changes to Medisave and CPF Minimum Sum.

CPF Minimum Sum

The CPF Minimum sum will be raised from $106k to $117k from 1st July 2009. This is the amount of money you need to set aside in your combined CPF OA and SA balance before you can withdraw the rest at 55.

The CPF Minimum sum will continue to increase every year to keep pace with inflation.

Medisave Minimum Sum

The Medisave Minimum sum (MMS) will be increased to $32k from $29.5k from 1st July 2009 in view of higher hospitalisation bills. Members can withdraw Medisave savings in excess of the MMS at age 55.

The maximum amount possible in Medisave will be increased to $37k. Any surplus will go into the SA if you are below age 55 or to your Retirement Account if you are above age 55 and have a Minimum Sum shortfall.

Medisave Withdrawal Limits for Surgical Treatment

Previously, the Medisave withdrawal limits for surgical operations were $150 for Table 1A to $5,000 for Table 7C.

Under the revised (increased) withdrawal limits that has taken effect from 1st June 2009:, patients can withdraw between S$250 and S$7,550 for surgical operations.

The CPF Board will be organising a half-day seminar on health and wealth for those who are in their 40s.

With regards to wealth, they will share 3 tips on how you could grow your CPF savings and stretch your CPF dollars in this current financial climate.

Find out how you can optimise your health and well-being through health screening and early detection. Learn how your Medisave can be used in the management of chronic diseases. Event details are as follows:

Date : 28 Feb 2009
Time : 9.00am to 12.30pm
Venue : 79 Robinson Road, CPF Building, Conference Room 1 & 2, Basement, Singapore 068897
Closing Date for Registration : 25 Feb 2009
 
The programme for the day is as follows:

9.00am : Registration
9.30am : “CPF – The Safe Way to Grow Your Money” by CPF Board
10.30am : Questions and Answer
10.45am : Tea Break
11.15am : “Optimising Your Health and Wellbeing” by Health Promotion Board
12.15pm : Questions and Answer
12.30pm : Seminar ends

To register, please click on this link (There is a $10 registration fee).