Health Minister Khaw pledges full GST offsets for subsidised patients

The PAP government (may the PAP progress!) is always on the lookout to help the needy and the less fortunate in society. The latest proposed increase in GST from 5% to 7% will help fund schemes to benefit the lower income groups in Singapore. In addition, Health Minister Khaw pledges full GST offsets for subsidised patients.

Nov 14, 2006
Health Minister Khaw pledges full GST offsets for subsidised patients

HEALTH Minister Khaw Boon Wan says the Government will try to fully offset any GST increase on medical costs incurred by subsidised patients, following the announcement to raise the Goods and Services Tax to seven per cent, from the current 5 per cent.

He made the pledge in Parliament on Tuesday, when the House resumed debate on the President's Address.

Mr Khaw said Singapore spends about 4 per cent of GDP on healthcare services. He said to meet the future needs of the population, it is not possible to keep healthcare expenditure in this region indefinitely.

'It is bound to increase. This increase will have to come from all stakeholders: Government, employers, insurers, patients and their families. This is part of the reason why GST has to go up,' he said.

'But I will recommend to the MOF (Ministry of Finance) to fully offset any GST increase on medical costs incurred by subsidised patients, as we did in the previous GST offset package,' he said.

In his speech, Mr Khaw said the Government will continue to enhance the existing healthcare framework and marshal enough resources to meet the rising demands of a fast ageing population for healthcare services.

He said as Singapore's population continues to age, the Government will try to slow it down by raising births and stepping up immigration.

'The better prepared we are for this inevitable demographic change, the better we can ensure that elderly Singaporeans face old age with confidence, calm and peace of mind,' he said.
He highlighted six areas that will see further enhancements.

First, Medisave will cover three more chronic illnesses (stroke, high blood pressure and high cholesterol) from next January.

'But my interest in this scheme goes beyond funding. I hope the scheme will raise the level of care for these common chronic illnesses so that the patients can avoid several complications in the future,' said Mr Khaw.

'My ambition is to make Singapore the best in the world for diabetic patients, where there is early detection of disease and effective long-term care of the disease in the community,' he added.

Second, MOH is planning a 'sequel' to last year's MediShield Reform. 'If there is public support, I hope to further increase the MediShield payout for patients with large hospital bills,' said Mr Khaw.

Third, at each budget cycle, the government will apply to the Ministry of Finance (MOF) for top-ups to Medifund and Eldercare Fund.

'So far, I am grateful for MOF's understanding and have been successful. I will continue to try but I know that this assumes health budget surpluses,' he said.

Fourth, Mr Khaw pledged to press on with greater information sharing so that patients make informed choices and hospitals can learn best practices from one another.

Fifth, the Government plans to publish public service standards at hospitals and how well they are being met to help hospitals focus on the key concerns of patients.

Sixth, the Government has implemented in polyclinics the policy of differential subsidies among citizens, permanent residents and foreigners.

'This way, we keep heavy health subsidy as a citizen's privilege while requiring foreigners to pay for their own cost. PRs continue to be subsidised although slightly less than citizens. We will look into extending this policy to hospitals,' said Mr Khaw.