Friday, October 10, 2008

Subsidies and Mean Testings

Subsidy Rate for Class Wards
You will be eligible for hospital subsidies if you are a Singapore Citizen or PR.
For Singaporeans,
there is a 20% for Class B1, 65% for Class B2 and 80% for Class C
For Permanent Residents,
there is a 10% for Class B1, 55% for Class B2 and 70% for Class C
* Its clear that PR subsidies is 10% lower than Singaporeans.

Mean Testing
In Jan 2009, mean-testing will kick in. You can still choose your ward class and be admitted to Class C or B2 ward. Your rate of subsidy will depend on your income level.
* If you earn $3,200 or less a month, you will enjoy the full subsidies of 65% for Class B2 and 80% for Class C
* If you earn more than $3,200 a month, you will receive slightly less subsidies for Class B2 and C, based on a sliding scale.
* The sliding scale range from $3,200 to $5,200 monthly income, with a reduction of 1% point for every $150.
* For those earning above $5,201 shall continue to enjoy substantial subsidies of 65 per cent in a C-class ward and 50 per cent in a B2-class ward.
* Your monthly income will be based on your total salary received over the last 12 months period and not based on the last month pay.
* For those not earning an income but lives in properties with less than an annual value of $11,000 will still get the full subsidies.
* The subsidies for permanent residents will be 10 percentage points lower than for citizens.

How I feel?
* The essense of this mean testing is not really to decrease healthcare expenses at this stage.
* Firstly, I don't see much difference between a maximum 15% cut of subsidies in B2 and C wards when the medical bill is already low.
* Secondly, it will only affect those earning $3,200 and above, which is probably 20% of the population and most of this group of people are probably staying in B1 wards and above right now.
* I think the government is trying to accustom Singaporeans to this concept and increase the mean testing bandings in future.
* Mean Testing will not be beneficial for people who earns >$3,200 a month but have many mouths to feed. Hence, if you belongs to this group, better go and get a Medical Insurance!!!

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