From April, about 40,000 cancer patients will be able to draw up to $600 a year for procedures such as magnetic resonance imaging and computerised tomography or CT scans - a move expected to result in about $25 million in withdrawals annually.

The push to extend Medisave was welcomed by doctors across Singapore. Dr Khoo Kei Siong, senior oncologist at Parkway Cancer Centre, said the subsidy for cancer scans was a positive step. Imaging is an integral part of treating cancer, he said. 'It will really help patients to...defray some of the costs.'

The $600 in subsidies should cover most of the costs of the two or three scans most cancer patients need each year, a Health Ministry spokesman said.

Mr Khaw also announced that in March, patients will be able to use Medisave for the out-of-hospital treatment of asthma, and possibly a chronic lung disease that affects mainly heavy smokers.

'I think the people who benefit the most will be middle-income families,' said Dr Chng Seo Yi from National University Hospital's Children's Clinic. 'The well-off might still choose to pay out of pocket, while the very poor will be assisted by medical social workers.'

Since Medisave was extended to outpatient treatment of diabetes in October 2006, there have been many calls to extend its use to other chronic problems.

Asthma had been on the cards for some time, said Mr Khaw.

'Just as safaris have their Big Five (must-see animals) chronic diseases also have their Big Five,' he said. Annually, up to $300 per Medisave account can already be used to control high blood pressure, cholesterol, diabetes and stroke. Adding asthma will complete the Big Five, he said.

Between 2006 and the middle of last year, more than 50,000 people had withdrawn about $9 million from Medisave for outpatient care.

Mr Khaw said Medisave may be expanded to other chronic illnesses where early treatment or regular monitoring can keep people out of hospital. That includes chronic obstructive pulmonary disease, a by-product of heavy smoking.

'This is a good thing as the funds can help people afford the newer treatments...which are a little more expensive and have also been shown to be more effective,' said Dr Hui Kok Pheng, president of the Asthma Association of Singapore.

salma@sph.com.sg

shefali@sph.com.sg