SINGAPORE — Several Members of Parliament (MPs) yesterday expressed concerns that people with financial difficulty might run into trouble when transitional subsidies for the MediShield Life premiums end and suggested that the Government consider extending the assistance beyond four years.

Under the recommendations of the MediShield Life Review Committee, fines or withholding of insurance benefits are some of the enforcement measures and penalties being considered for those who “wilfully default” on their premiums under the compulsory scheme.

Statistics provided in the report showed that last year, about 7 per cent — or 270,000 — of Singapore citizens and permanent residents were not insured under MediShield. Of these, one-fifth were uninsured because of pre-existing conditions.

MPs whom TODAY spoke to said they have come across individuals who have insufficient funds in their Medisave to pay for the premiums. Some of them could have low Medisave balances because of long-term unemployment, said Ms Ellen Lee, MP for Sembawang. Dr Chia Shi-Lu, MP for Tanjong Pagar, added that elderly Singaporeans face the challenge of insufficient account balances. Exclusion of coverage due to illnesses also forces some of them to drop out of the scheme, he said.

Apart from the elderly, there is also a small group of Singaporeans with low account balances in Medisave because they are self-employed or do not contribute enough to the Central Provident Fund. To help them with premiums for the new MediShield Life scheme, Dr Chia said: “For example, we can push for transitional subsidies to be even higher. We can push for the transitional subsidies to be maintained at the same level over the four years and even beyond that, depending on their needs.”

To ease the shift from MediShield to MediShield Life, the Government will provide transitional subsidies for all Singapore citizens for the first four years of MediShield Life.

Ms Tin Pei Ling, MP for Marine Parade, said that after the transitional period, it is important for the Government to monitor very closely and regularly review the situation to see whether families are able to afford the premiums.

The committee said that during the public consultation phase, there were concerns particularly among Singaporeans living overseas that the scheme is compulsory for all. In line with the aim of moving towards a more inclusive society, Singaporeans should exercise greater collective responsibility, the committee said.

The MPs reiterated that all Singaporeans have a part to play. Said Ms Lee: “Personally, I feel that even if they are living overseas, they still have an obligation towards their motherland ... We should be looking after one another even if we are overseas.” Dr Chia explained that premiums are priced based on the participation of the entire population. “If everybody starts dropping out, everybody else will have to pay more,” he said.

Meanwhile, the labour movement said it supports the new scheme as it will provide all Singaporeans with better protection against large medical bills and assure Singaporeans that they are covered for life.

Ms Cham Hui Fong, assistant secretary-general of the National Trades Union Congress, said: “This will reduce out-of-pocket expenses and give greater peace of mind to Singaporeans ... We appreciate the Government’s commitment to help Singaporeans and workers with premium subsidies and find it reassuring that premiums will be fully covered by Medisave contributions.” — Today