HK health reforms follows Singapore

Singapore has operated a compulsory health care savings scheme since the 1980s, which has not only saved the government billions of dollars but also helped nurture world-class facilities.

Like the compulsory "old age insurance" programme being proposed for Hong Kong, Singaporeans have six to eight per cent automatically deducted from their salaries each month and paid into a Medisave account.

Employers must contribute an equal amount.

Medisave savings can then be drawn on by members to help pay both their own hospital costs and those of their immediate family.

Ng Yeow Tong, a health care analyst at GK Goh Securities, said: "The system works very smoothly."

Under the Singapore system, residents below the age of 55 are required to save up to S$21,000 in their Medisave Accounts. Upon reaching the age of 55, members are expected to keep a minimum S$16,000 in their accounts for their health care needs during retirement.

Singapore also operates Medishield, a catastrophic illness insurance scheme to cover medical expenses of major or prolonged illnesses.

Premiums are voluntary and can be paid out of normal Medisave funds.

This is similar to the "emergency insurance" scheme being proposed for Hong Kong.

A further enhanced scheme has recently been proposed by a ministerial committee on health care to help counter the expected rapidly rising cost of caring for Singapore's elderly in the new millennium.

Singapore's health care bill is expected to double by 2030 when one in four of its population will be over 65. It will be eight per cent of the gross domestic product by 2030, rising from the present four per cent.

Finally, there is Medifund, which is an endowment fund set up by the Government to help the poor pay for medical care.

Interest from the endowment fund is distributed to public hospitals and used to help offset the bills of patients who cannot afford to pay.