Government cuts healthcare subsidies for PRs

SINGAPORE - The Government announced today through a press release that the healthcare subsidies for Permanent Residents are to be reduced, starting from the third quarter of this year.

The Ministry of Health said that the changes mean that most PRs will soon enjoy only about half the subsidies citizens enjoy.

This is to draw a further distinction in the privileges offered to citizens as compared to PRs.

The adjustments will apply to inpatient services of Class B2 and C wards, day surgery and specialist outpatient clinics in restructured hospitals, and intermediate and long-term care services.

For example, a patient of an average monthly income of $3,200 and below staying in a Class C ward can currently receive a subsidy rate of 60 per cent.

Under the changes, the subsidy rate will be reduced to 55 per cent. The subsidy rate for citizens is 80 per cent.

PRs in the same income band staying under a Class B2 ward will see decrease of subsidy rates from 45 per cent to 40 per cent.

For day surgery, the subsidy rate for PRs is to be lowered to 40 per cent, down from 45 per cent.

For specialised outpatient clinics, the subsidy rate for PRs will be lowered to 25 per cent, down from 30 per cent.

The ministry said that the subsidy adjustments are different for lower income PRs, as it is mindful of the impact of the changes.

The changes in restructured hospitals will be implemented in two phases, one in October this year and the next in April 2013, while that for the intermediate and long-term care sector will see the changes implemented in the third quarter of 2012.

Other changes include the lowering of subsidies for PRs for Community Hospitals and Residential Services and the fixing of subsidy rates of citizens for these services at 75 per cent.

This fixed subsidy rate will kick in from the third quarter of the year.

Low-income patients to get 75% hospital subsidy

SINGAPORE - Lower-income patients will receive a 75 per cent government subsidy in community hospitals.

Those above the median income, who previously did not receive any subsidy, will now receive a 20 per cent to 50 per cent subsidy.

Subsidies for nursing homes, day care and rehabilitation facilities and home-based care packages will also be raised so that more in the middle-income group can benefit.

About 80 per cent of elderly will qualify for these subsidies.

For example, a middle-income family with an elderly parent at a private nursing home will see its costs reduced to $1,700 from $2,800 with these new subsidies.

A $120 grant per month will also be offered to families hiring a foreign domestic helper to help care for elderly family members who have severe dementia, or are immobile and unable to care for themselves.

This is on top of the $95 concession in the Foreign Domestic Worker Levy that all households with elderly persons will continue to enjoy.

Further, home modifications such as grab bars and anti-slip treatment for bathroom tiles will also be subsidized through a new programme, the "EASE" (Enhancement for Active Seniors) Programme.

Each citizen household with an elderly member can get home modifications worth around $2,000.

They will pay no more than $250 themselves.

About 130,000 households are expected to benefit from this scheme.

GST for long term care will also be absorbed for subsidised patients in community hospitals, nursing homes and other home-care services.