SDP proposes abolishing Medishield, Medisave & Medifund for single-payer system

A conversion to a single-payer insurance system.

Sulaiman Daud | May 11, 2019, 11:22 PM

The Singapore Democratic Party (SDP) has a new idea on how to structure Singapore's healthcare.

On May 11, 2019, it proposed doing away with the current "3M" health policies, Medishield, Medisave and Medifund, and introduce a single-payer insurance scheme in their stead.

National Health Investment Fund

Presented by party Chairman Paul Tambyah and CEC member Khung Wai Yeen on May 11, the SDP said that their new plan would be called the National Health Investment Fund.

Under this plan, every Singaporean would contribute an average of S$50 a month to the Fund, depending on income levels, through their CPF.

A patient would pay 10 per cent of their hospital bill, with the amount capped at S$2,000 per year.

The remainder of the costs would be paid by the Fund.

According to the SDP, co-paying hospital bills would help to emphasise personal responsibility and reduce abuse by providers.

As for the funds in Medisave, they would be returned to people's CPF accounts. Said Tambyah:

"This payment from a single source rather than multiple sources from the 3Ms eliminates the present complicated subsidy system."

SDP: Current system not meeting S'pore's needs

Khung also criticised the current 3M system and said it did not meet the needs of Singaporeans.

He added that Medisave was funded by CPF funds, placing pressure on retirement savings.

The SDP stated that Medishield Life made things difficult for less well-off patients, as the deductible can go as high as S$3,000.

Care over profit

According to the SDP, their plan differed from the PAP as the latter allegedly runs hospitals as profit-making ventures, which collect surpluses in excess of the cost of caring for patients.

Tambyah said that healthcare is treated like a "commodity", and people avoided seeking treatment because of costs and end up paying more to treat the complications.

He added:

"As a medical professional, I feel that this is not right. We should ensure that there is equal treatment for all, care based on clinical need and not on ability to pay."

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Top image from SDP.