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http://www.straitstimes.com/STForum/Story/STIStory_780742.html
SDP defends health-care proposal
WE THANK Mr Jason Salim for his interest in our proposed health-care plan ('Health care: Why Govt's policy works while SDP's won't'; Tuesday).
First, his worry that the plan will lead to tax increases for ordinary Singaporeans is unfounded. We recommend that corporate tax, not personal tax, be increased.
This is because companies will enjoy savings as they no longer have to bear the costs of their employees' health care under the plan.
Second, we recommend replacing the bureaucracy of the current 3M (Medisave, MediShield and Medifund) system with a single-payer, universal health insurance system, with premiums and co-payment to ensure responsible use of medical services.
Instead of 'welfarism', we are promulgating a system in which all Singaporeans pool their resources together in a cooperative manner to address life's contingencies, which may affect any one of us.
Third, Mr Salim's impression that the 3M system is working is inaccurate.
In 2010, 3M accounted for less than 10 per cent of total health-care expenditure of $12 billion, with Medisave contributing $732 million, Medifund $80 million, and MediShield $248 million.
The rest is funded by employers' health benefits and out-of-pocket expenses - the highest level in developed East Asia.
We agree with Mr Salim that a health-care plan must not saddle future generations with higher costs.
Yet the 3M system is predicated on one generation's medical expenses being borne by the next, as evidenced by the criterion that an individual must first exhaust his own and his family's Medisave before qualifying for Medifund.
Under our plan, students will receive subsidies for their premiums.
With the elimination of Medisave and MediShield, each Singaporean contributes less every month under our plan than what they are currently paying.
Associate Professor Paul Tambyah
Dr Leong Yan Hoi
Healthcare Advisory Panel
Singapore Democratic Party
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