SDP - SDP sends healthcare plan to Medishield Life committee

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SDP sends healthcare plan to Medishield Life committee

Added on: Monday, 6 January 2014

by the Singapore Democrats

http://yoursdp.org/news/sdp_sends_healthcare_plan_to_medishield_life_committee/2014-01-06-5761

MedishieldLife.jpg
 
The SDP has sent our alternative healthcare plan to the Medishield Life Review Committee (MLRC). Titled The SDP National Healthcare Plan: Caring For All Singaporeans, the 87-page paper proposes reforming our healthcare financing system to one that is universal, affordable and sustainable.

http://yoursdp.org/_ld/0/5_sdp-national-he.pdf

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The MLRC, headed by Mr Bobby Chin, was appointed after PM Lee Hsien Loong announced in his National Day Rally last year that the Government would amend the Medishield scheme, now called Medishield Life, to increase patients' coverage of medical bills.

http://www.moh.gov.sg/content/moh_w...ment-of-medishield-life-review-committee.html

Details have not been announced and the MLRC was set up to study the proposed parameters of the scheme.

But even at this early stage, PM Lee has signaled that "contributions to Medisave will have to increase." Does this mean that Singaporeans will have to continue to shoulder the main bulk of the healthcare expenditure?

This contrasts with the SDP's plan, a detailed and comprehensive alternative proposal, which shifts the onus of paying for the major portion of the nation's healthcare expenses onto the government, a practice in line with other comparable European and Asian economies.

Singapore is one of the last few countries where the healthcare system is not universal. Because of this many in the poorer segment of society do not receive adequate medical care. For those who meet a catastrophic illness, their savings are often wiped out because of high medical bills.

By sending our healthcare plan to the MLRC, the SDP hopes to inject into the healthcare debate the need for a genuinely affordable national insurance scheme where healthcare extends to all regardless of one's station in life.

One of the terms of reference of the MLRC is "to consult widely with the public and key stakeholders”. As such, the SDP looks forward to participating constructively in the consultation process and bringing a fresh and much-needed perspective to the topic.
 
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6 January 2014

Mr Bobby Chin
Chairman
Medishield Life Review Committee

Dear Sir,

Allow me to congratulate you on your appointment as Chairman of the Medishield Life Review Committee.

I would like to bring to your attention The SDP National Healthcare Plan: Caring For All Singaporeans of which a copy is linked here http://yoursdp.org/_ld/0/5_sdp-national-he.pdf. The document highlights the various problems brought about by the current healthcare system. Our paper also details a comprehensive programme that would alleviate these problems and bring about a healthcare system that is universal, affordable and sustainable for our citizens.

Given that the Medishield Life Review Committee has been charged with reviewing and studying the parameters of our healthcare financing system, I am sure that you would be interested in studying the proposals contained in the SDP plan.

We look forward to contributing to the review of our healthcare system and make it one that will take care of all Singaporeans.

As this subject is of public interest, I hope you will not mind if this letter is published on our website.

I wish you and your Committee members the very best.

Chee Soon Juan
Secretary-General
Singapore Democratic Party
 
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Medishield Life Review Committee (MLRC)

http://www.moh.gov.sg/content/moh_w...ment-of-medishield-life-review-committee.html

APPOINTMENT OF MEDISHIELD LIFE REVIEW COMMITTEE
News Highlights
Prime Minister Lee Hsien Loong had announced in his National Day Rally speech 2013 that the Ministry of Health (MOH) would consider enhancements to MediShield, to provide all Singaporeans with lifetime peace of mind against large bills. The enhanced scheme, which will be renamed MediShield Life, will provide better coverage for large bills and bring in all Singaporeans under its protection, including the very old and uninsured with pre-existing illnesses.



2. The introduction of MediShield Life is a major step for Singapore’s healthcare financing framework, and will have significant impact on many generations of Singaporeans. Hence, MOH has appointed a MediShield Life Review Committee to review and study the proposed parameters for MediShield Life, and as part of its review, to consult widely with the public and key stakeholders, so as to better understand the benefits, implications and trade-offs involved. The MediShield Life Review Committee will be chaired by Mr Bobby Chin, member of the Council of Presidential Advisers of Singapore and a Fellow Chartered Accountant of the Institute of Singapore Chartered Accountants.



Terms of Reference

3. The Terms of Reference for the MediShield Life Review Committee are as follows:

a. The Committee shall review the proposed design parameters for the MediShield Life scheme and make its recommendations on them, so as to meet the objective of ensuring adequate insurance protection for all Singaporeans for life, while maintaining premium affordability.

b. In reviewing the MediShield Life parameters, the Committee shall consider key issues and trade-offs, such as:

i. The balance between benefit enhancements and premium levels; and

ii. The appropriate extent of pre-funding during working ages, to help lower future premiums in old age.

c. In its review, the Committee shall engage widely with citizens, key stakeholder groups and experts.



Timeline
4. The Committee is expected to complete its review in approximately six months and present its recommendations for MediShield Life to MOH in May 2014. The Government will study the recommendations and make its decision before working towards implementing MediShield Life in 2015.
 
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http://www.todayonline.com/singapore/sdp-submits-proposals-medishield-life-panel

BY
NEO CHAI CHIN
PUBLISHED: 07 JANUARY, 4:03 AM
SINGAPORE — The Singapore Democratic Party (SDP) has put forward its healthcare proposals to the MediShield Life Review Committee and signalled its willingness to take part in consultations for the ongoing review of the insurance scheme.

Announcing the submission on its website, SDP Secretary-General Chee Soon Juan said it looks forward to participating constructively in the consultation process and bringing a fresh and much-needed perspective to the topic.
 
SDP: On Medishield Life

[Tan Lip Hong]: All the confusion, frustration and angst that we feel is created by the Government with their profit-making schemes (Medishield makes a profit of 35% a year on average for the CPF Board (excluding investment gains) - all this goes into the CPF reserves), and all the effort to make things as non-transparent as possible.

http://yoursdp.org/publ/perspectives/on_medishield_life/2-1-0-1419

tanliphong.jpg


Dr Tan Lip Hong is a member of the SDP's Healthcare Advisory Panel.
 
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The issues about healthcare financing are clear

Added on: Tuesday, 7 January 2014

by Dr Tan Lip Hong

http://yoursdp.org/publ/perspectives/on_medishield_life/2-1-0-1419

healthcare-payment.jpg


At the recent healthcare forum organised by The Online Citizen (Please read link here --> http://yoursdp.ucoz.org/publ/perspectives/2-1-0-1417 ), some participants expressed the view that the problems regarding healthcare in Singapore are very complex and do not seem to be able to be solved in our lifetime.

I could also detect the same frustration, angst and hopelessness amongst the attendants at the forum.

However, for people who have spent some time thinking of healthcare financing (such as Dr Jeremy Lim and Mr Lawrence Lien), it is clear where the future of healthcare financing lies. These are the same issues that the SDP has highlighted in our healthcare policy paper: Please read link here --> http://yoursdp.org/_ld/0/5_sdp-national-he.pdf

One, there must be comprehensive & universal healthcare insurance.

Two, the co-payment component, if present, must be affordable.


A major concern about healthcare is the utter uncertainty of a catastrophic event - an expensive illness that can strike anyone and can bankrupt even a well-to-do individual.

To spread this risk, experts agree that a form of healthcare insurance is needed.

This insurance must be comprehensive and universal i.e. cover all illnesses (not leave out pre-existing illness or big bills (where help is most needed) like Medishield currently does - a $200,000 bill may only be covered up to $20,000 (out-of-pocket $180 000) and all people, that is, not make insurance so cheap for the young ($30 per year) and so expensive for the old ($2,000+ per year) that the old cannot afford to be covered.

Although the details have not been worked out, the biggest clue that MediShield Life will not be a truly comprehensive national health insurance scheme is the fact that PM Lee Hsien Loong has announced that "contributions to Medisave will have to increase".
 
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by Dr Tan Lip Hong

In picture form, the Government's proposed scheme will look something like this:

govt.png


Will this be the only "national insurance scheme" in the world where the "co-payment" component is 10 times the "insurance" component.

A true comprehensive health insurance scheme, should be the opposite, looking something like this:

sdp.png


The co-payment component must be affordable. It makes no sense to design a scheme where the insurance premium alone is "affordable", but excess and exclusion mean that "out-of-pocket" payment remains unaffordable.

Conversely, if the insurance coverage is comprehensive, is there a need to set aside so much money to deal with co-payment?

There is currently $60 billion locked up in individual Medisave accounts, all sitting there doing nothing. Yet, when one is struck down by a major illness, the maximum $36,500 in each Medisave account is barely sufficient to deal with the cost of the illness.

Ideally, we should contribute most of our money into a 'pool' rather than leave it in individual Medisave accounts. This way, the 'pool' will be large enough to cover all illnesses comprehensively.
 
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by Dr Tan Lip Hong

Three, the total healthcare expenditure (THE) is currently about $12 billion (4.2% GDP). Of this, government spending (Government Health Expenditure or GHE) has hovered at around $4 billion ($4.8 in 2012; 1.2% - 1.4% GDP), and private health expenditure (PHE) is at around $8 billion.

Payment-Chart1.png


At status quo, if we were to move to a full insurance scheme i.e. no co-payment, all PHE goes into premium payment, the premium would average $2000 per year for everyone (equal to per capita PHE). This $2000 premium will pay for all illnesses, including expensive, rare treatment without the need for any co-payment (no exclusions).

However, if the Government increases the GHE to $10 billion (3.5% GDP - still below OECD or WHO norms), the table looks something like this:

Payment-Chart2.png


We can see that a comprehensive health insurance will cost an average of $500 a year in premiums - quite affordable.
 
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by Dr Tan Lip Hong

Four, there are alternatives. After much consultation and calculation, we have proposed a detailed, affordable, comprehensive national health insurance plan.

The maximum premium a year would be $600. Co-payment will be 10% across the board (all GP visits, hospital stays etc, except for minor self-limiting illnesses like cough and colds, which will be subsidised at $10 per visit). There is a maximum co-payment cap of $2000 a year.

Payment-Chart3.png
 
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by Dr Tan Lip Hong

I might point out that almost all of the financing conundrums, most the questions brought up during the forum are addressed in our 87-page report.

I have attached three condensed articles on the SDP plan: an executive summary, an article on facts & figures, and the last dealing with issues of moral hazard & cost containment

We have also dealt with ward classes, preventive healthcare, screening tests, private healthcare, long-term care, etc in our report in a comprehensive way.

I really do think that our healthcare financing problems are not large. We are not the US or the UK or even Taiwan. We are not a big country or even a state or county. We are a city. Nearly all our tertiary care is provided by government hospitals (whatever else the government like to call them). GP clinics are present everywhere. With full internet penetration and audit programmes, there is no way any healthcare institution can get away with any abuse.

Singapore is ideally suited for a National Healthcare Insurance scheme.

All the confusion, frustration and angst that we feel is created by the Government with their profit-making schemes (Medishield makes a profit of 35% a year on average for the CPF board (excluding investment gains) - all this goes into the CPF reserves), and all the effort to make things as non-transparent as possible.

I believe our healthcare financing problem can be solved in this lifetime. Only the political will remains.


The full report of "SDP's National Healthcare Plan: Caring for All Singaporeans" is available for download here --> http://yoursdp.org/_ld/0/5_sdp-national-he.pdf

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Conclusion

by Dr Tan Lip Hong

All the confusion, frustration and angst that we feel is created by the Government with their profit-making schemes (Medishield makes a profit of 35% a year on average for the CPF board (excluding investment gains) - all this goes into the CPF reserves), and all the effort to make things as non-transparent as possible.

I believe our healthcare financing problem can be solved in this lifetime. Only the political will remains.
 
Interview with Dr Paul on the bed crunch issue in public hospitals

by theonlinecitizen on 9 January 2014


http://www.theonlinecitizen.com/201...-on-the-bed-crunch-issue-in-public-hospitals/

ST_20140108_SKCRUNCH08_3990008e.jpg


Photo Credits : Straits Times


The Straits Times yesterday reported on hospitals facing a severe bed crunch. What are the reasons behind it? Is there a bigger problem than just a peak-season demand for beds? What can be done to resolve it?

TOC spoke to Dr Paul Ananth Tambyah to hear his views. (Dr Paul has more than twenty years of experience practising and lecturing in the medical profession.)

1) You’ve seen the recent reports on the lack of beds in public hospitals. You also spoke about this issue briefly during TOC’s healthcare forum. From a doctor’s perspective, how severe is the problem really?

This is a perennial problem and unfortunately is a result of funding policies which are very hospital-centric. It has become something that doctors in the public sector have become accustomed to and has undoubtedly contributed to the exodus to the private sector where doctors feel that they can better treat their patients safely. To be fair, the same is true in some other systems such as the United States which have underfunded and overcrowded public healthcare sectors.

2) Housing beds in tents and corridors – is this really suitable for treating patients or specific illnesses? Of course, some will say this happens in field hospitals, too.

Tents and corridors are at least better than not being seen at all! They are obviously suboptimal as there are issues with getting healthcare workers to the patients as well as privacy and infection control implications. We are not in a war or disaster zone and hopefully should not need to use a field hospital!


3) Some observers have indicated that this shortage is due to the holiday season. Do you agree, and if not, what is the possible reason?


It is true that there might be a rebound after the recent Christmas and New Year holidays. This results in elective operations being squeezed into the period after the New Year and just before the Chinese New Year. I do not have all the figures, however, it would be unlikely that hospitals are not cancelling elective operations if the bed crunch is really due to a rise in elective surgeries.

There are many other factors which may have contributed to this surge including the ongoing dengue epidemic (although a lot more of these patients are being treated as outpatients). We need more data to understand the specific reasons for the increase at this time if indeed it is an unusual surge.

4) We have new hospitals. Why is this not alleviating the situation?

The nett total number of beds in service has not increased in step with population growth over the last two decades. The new hospitals have replaced some of the older hospitals which have closed (Toa Payoh hospital, the old Changi hospital etc). Even if there are new hospitals, they need staff to run the wards. The rapid development of the new private sector hospitals has also drained some qualified staff from public hospitals. This further aggravates the problem of insufficient bed capacity.


5) What do you think needs to be done to resolve the situation?

The long term solution is a comprehensive, universal, single payer healthcare insurance scheme that covers primary care, hospital care as well as long term care. In the short term, there are intermediate steps that could be taken for example such as providing quality public sector long term care rather than depending on VWOs and the private sector. Many current in-patients could probably be looked after in high quality long term care facilities or with home nursing if these were funded by the national health insurance system (Medishield). Medishield is currently limited to hospital care as well as a few selected outpatient treatments. This has diverted patients to hospitals and aggravated the squeeze.

6) Can we not compel private hospitals to assist, assuming they have capacity? Noted that Gleneagles has assisted Changi in July last year.

Definitely! Breaking the private-public barrier is an important first step in dealing holistically with the problem. Baby steps have been taken towards this with the enhancements in CHAS. This needs to be taken all the way with a comprehensive health insurance system.

Doctors, nurses and allied health professionals in Singapore’s public hospitals are working very hard but the infrastructure constraints have severely stressed them all. They and all the people of Singapore deserve a healthcare financing system which places patients first and is sustainable in the long term. As you know, I think that the SDP healthcare plan which we forwarded to the Medishield Life Review Committee under Mr Bobby Chin is such a plan.


TOC thanks Dr Paul for sharing his insights on the issue. Dr Paul is also one of the medical professionals who sits in the Singapore Democratic Party’s Healthcare Advisory Panel. All comments are sent in Dr Paul’s personal capacity and do not represent any of the institutions he work with.
 
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