Health Mininster Khaw Boon Wan held a discussion with Union leaders on means testing.
What is means testing ?
In a nutshell, means testing means a patient can pick the ward class to stay in at a restructured hospital and the level of the hospital subsidy will be determined using factors such as income.
That will mark a change from the current situation where a person who chooses to be admitted into a Class B2 or C hospital ward receives the full subsidy corresponding with the ward class, regardless of his income level.
The objective of means testing is to ensure that lower-income Singaporeans obtain a higher subsidy than those who are better off.
The exact details of how means testing will be implemented are still being ironed out and the ministry has not decided on the exact critieria yet.
In the meantime, Singaporeans are encouraged
1) to buy the right medical insurance plan to defray the cost of hospitalisation.
2) to have a life time medical insurance plan and put aside enough money for insurance premiums post-retirement.
3) to buy health plans early for insurability. It is best to purchase a health plan while one is still young and healthy. It is advisable to go for the highest health cover that one can afford. This is because insurers allow you to switch to lower-priced plans without under -writting, or assessing your health conditions. However, the reverse is not permitted.
So while awaiting the finalisation of the formula. one should start looking for the different insurance cover in hospitalisation.
