Health Minister Khaw Boon Wan yesterday revealed a detailed sliding scale of declining subsidies for those earning salaries rising from that base.

Those earning $5,201 and more will continue to enjoy substantial subsidies of 65 per cent in a C-class ward and 50 per cent in a B2-class ward.

Means testing for admission to subsidised wards at public hospitals has been in the air for almost a year.

The Ministry of Health (MOH) is concerned because some who can afford better wards have been choosing the heavily subsidised C and B2 wards, sometimes crowding out lower-income patients.

With means testing, those who choose C or B2 wards will have their salaries checked to see if they ought to pay more.

The question was where Mr Khaw would draw the line for enjoying the full subsidies. He had promised to be generous and, yesterday, the details he provided in Parliament showed that a good 60 per cent of workers will be entitled to the full subsidies.

The top 20 per cent of workers benefit least, but even they will continue to enjoy substantial subsidies.

The monthly salary is worked out as one-twelfth of the worker's annual pay, including bonuses.

Those with no income, such as housewives, retirees and children, and those living in Housing Board flats or properties with annual values of $11,000 or less, also get the full subsidy.

The subsidies for permanent residents will be 10 percentage points lower than for citizens.

Mr Khaw's announcement was greeted with relief by several MPs, including Jurong GRC's Madam Halimah Yacob, who was pleased that 60 per cent of workers will get the full subsidy.

Among those not fully convinced was Non-Constituency MP Sylvia Lim who argued that the ministry was addressing a problem of its own making, because it had made C- and B2-class wards attractive by adding 'non-essential creature comforts to highly subsidised wards'.

'Won't it be more prudent for MOH to manage expectations than to raise them and increase costs unnecessarily?' she asked.

Mr Khaw replied saying he hoped that 'no matter how poor you are, your health care will continue to rise in accordance with the economic status of the whole country'.

Opposition MP Low Thia Khiang (Hougang) wanted to pin down how long the Government would hold to the subsidy levels announced yesterday.

Mr Khaw said that as the economy grew and income- level profiles changed, the salary-to-subsidy levels would have to be adjusted.

He added: 'The fundamental policy remains - that the health subsidy is limited - so let's see how we can share it out as fairly as we can but at the margins, be flexible.'

Nominated MP Siew Kum Hong felt it would be better to check the per capita household income - the total household income divided by the number of family members. Using the individual's salary would penalise households with low per capita income, he said.

Mr Khaw felt it would be too intrusive to check the entire family's income for one individual's short hospital stay. But he gave this assurance: 'We will be flexible at the margins to help those who may appear to be of high income, but who have exceptional financial liabilities.'

He also hoped that with means testing, many who earn more than $3,000 a month and are now under-insured will buy the insurance cover they need.

'This way, they would not need to fight with poorer patients for the crowded B2- and C-class wards,' he said.

salma@sph.com.sg

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