PSYCHIATRISTS and lobbyists have welcomed the decision to relax restrictions on Medisave use, as it will allow up to 20,000 people currently suffering from schizophrenia and clinical depression to dip into their compulsory medical savings to pay for treatment.

They make up the bulk of the 30,000 mentally ill patients living in the community and treated as outpatients by the Institute of Mental Health (IMH).

Most of them are on lifelong medication that can cost between $290 a year for subsidised patients and up to $1,000 a month for specialised treatment.

On Monday, Health Minister Khaw Boon Wan addressed questions from Members of Parliament, asking for the chronic disease management programme (CDMP) to be extended to cover mental ailments.

The CDMP allows patients with chronic illnesses to withdraw up to $300 a year from each Medisave account to use towards their clinic bills.

This withdrawal limit with deductibles and co-payment will also apply for treatment of schizophrenia and depression.

CDMP was first introduced for diabetes and later expanded to include hypertension, lipid disorders and stroke, and most recently asthma and chronic obstructive pulmonary disease.

A spokesman for the Ministry of Health (MOH) said that discussions are under way with general practitioners and psychiatrists on how best to implement the new initiative, which will be ready before October.

Read the full story in Friday's edition of The Straits Times.