2/22/2014

An awesome $8b budget giveaway




Everyone is wearing a smile when they spoke about the budget. Pauline Straughan appeared on a news interview like an 18 year old girl given the key of puberty. MPs were all beaming and raring to rush to MPS to tell their residents the good news. The budget was a give away, a give, give and give budget. Pioneer Generations will receive Medisave top ups and subsidies on the up and coming and most feared Medishielf Life Scheme. There will also be subsidies for outpatient treatments at polyclinics. Those who missed out by a few years would also be given Medisave top ups. Working seniors will have higher CPF contributions from their employers. And there are also goodies for the SMEs.

Let me just focus on the Pioneer Generation Package. It is all about healthcare and how to pay from their Medisave savings plus Medishield Life and outpatient subsidies. For those who are 80 and above this year, the Medisave top ups and Medishield Life subsidy will see them fully covered without having to cough out extra payement. This is a fairly clear cut case. The 70 to 80 will get their proportional top ups plus 50% subsidies on the Medishield Life premiums. The Medisave top ups range from $200 to $800 depending on the age group with the 65s getting $200 annually for life. The Medishield Life premium subsidies will be 40% for the 65s and 60% for the 90s.

There is a little thing that is not clear here. Would the 65s be getting $200 top up for life or the amount would increase as they hit the higher age group? This point is very important as we get to the details of the give and give budget. What would be the net position when the take and take Medishield Life Scheme is announced?

Assuming the Medishield Life premium for a 65 is at $600, can be more, a 40% subsidy would mean that he still has to pay $360. With a $200 Medisave top up, his net payment is $160.

In the case of a 70 year old and a Medishield Life premium of $1000, a 50% subsidy means he will have to pay $500. If he gets a $500 Medisave top up, he needs not pay anything extra.

For the 80s, the announcement is that the govt will pay fully for their Medishield Life premium for this year, so likely the compulsory scheme will be implemented this year. What about subsequent years? If the Medishield Life premium is $3000, a 60% subsidy means they need only to pay $1,200. With a $800 Medisave top up, he still needs to come up with a cash payment of $400.

The above scenarios look very affordable and reasonable. The situation would not be the same if the Medishield Life premiums are higher than the above guesstimates. And for the 65s, if the Medisave top up is fixed at $200 annually with no match up as they hit the next age group, then the higher Medishield Life premiums will become less affordable and getting worse with years.

The other issue to consider is the Medishield Life package itself, what are being covered and whether there are things like co payments, and exclusion clauses. As for the subsidies for outpatient treatments, the pioneers will be paying less with the subsidies. There is not upfront payment of any kind. But like all subsidised or discount pricing, the trick is how high is the ‘marked up’ The subsidy and discount could be just a marketing ploy and the net effect is that one is paying more and more while feeling shiok with the high subsidies.

The thing that people may forget at this point in time is that while the Pioneer Generation have escaped the dragnet to pay Medishield Life for life, those that were not in the package, the younger generations and their children will be the ones that would be there to pay and pay for life. Can they afford it?

The euphoria now is give and give and give by the govt. Wait for the take and take and take part to fall in place for the net effect of this budget to be felt. Hope the morphine jab will last and the pain will not be excruciating when it comes. There is a saying, ‘xian tian hou ku’, or give you the sweet first then comes the bitterness.

22 comments:

Darkness 2014 said...

Only a bloody fool will say this is a very good book after reading only the first chapter. I have a feeling this is only the beginning of a very long and complicated story with many twist and turns.

Darkness 2014

Anonymous said...

I think I have seen this movie before.
It used to be call GE 2011.

Part 1: Before GE 2011, PAP government gives me a drumstick.
Part 2: After GE 2011, PAP government takes back from me the entire chicken.

Anonymous said...

Vote Opposition for an inclusive Pro-Singaporean Budget in GE 2016.

Accept the Pioneer Generation Package.
And then vote Opposition for a Pro-Singaporean Budget in GE 2016.

Anonymous said...

There is no free lunch lah. I went to eye centre for check up on floaters in my eye and after subsidy, I still have to pay $60. That was my 4th appt. just to confirm eye pressure normal. Sometimes you wonder how they mark up the fee before subsidy.

Anonymous said...

Let's give PAP government the drumstick instead.
We tell them we accept the PGP now ... thank you very much.
And then GE 2016, we take back an entire chicken by voting Opposition.

Anonymous said...

Singapore Entrepreneur should get more ways of get funding instead of many restriction, as long as they proven their business make money?

Anonymous said...

Be careful what you wish for.
There may be many more Singapore entrepreneur companies like AIM.

Anonymous said...

It is not $8 billion every year. This $8 billion will last for decades. Is it a big deal?

Just the COE gets $2 to $3 billion every year. $8 billion over 2 or 3 decades is really small change.

Anonymous said...

Many of the older workers had many years working experiences, their chance of success is high because of their years of experience handling and overcoming problems?

The locked up of the CPF make it difficult or impossible for them to run or expand their business?

Ways to allow those who had proven they can run a profitable business through:

1) HDB refinancing so that they don't need to sell their HDB to get funding?

2) Using their CPF as collateral for funding or low interest loan?

3) Greater and less restriction for small business to access of funds if their whatever business is consistent profitable?

Anonymous said...

An awesome $8 billion budget giveaway .

Remember T & Cs apply.

Anonymous said...

"Wait for the take and take and take part to fall in place..."
RB

It has been already fall in place lah.

Why do you think they want to delay your CPF withdrawal and have CPF Life, Medishield Life, etc you tell me lah?

Anonymous said...

The one that take the most is high HDB prices.

And this one Sinkies cannot don't give, unless want to camp at East Coast Park lah.

Anonymous said...

Vote opposition to get more!

Hahahahahahaha.

patriot said...

ONLY FOOLS WILL BE THANKFUL TO THEIR EXPLOITERS.
THE MORE HELPS THEY GET AND NEEDED, THE MORE THEY WILL BE
MANIPULATED.
THIS IS PURE COMMONSENSE.

patriot

Anonymous said...

RB
Just met an old taxi drivet same same like me, old fart saying, "wa, so good, at his age still have so much goodies", .....siow liao, using our, money and giving a tiny bit back and the farts are saying, "ho sei liao", wa sai......are you driving red bean, i e-mail you my location, pls run me over...PLEASE, i'm sitting beside one prc with wife, mother and his 4 children, complaining about the leadership of his boss, wa sai...lagi want to go.

Kaki

Anonymous said...

When PAP says they wanna give, give & give, be afraid, be very afraid! Didn't they tell you HDB flats are affordable ? They are preparing another raid on your CPF. When the take take & take comes, you'll be left high & dry. After all, PAP are very good at setting bleed you dry pricing !

Anonymous said...

Every year I can offer great billion dollar packages when the net gain is a few billion for me and the people getting the billions actually get nothing but to return everything plus interest and capital.

Anonymous said...

My simple question is WHY NOW and not before 2011? Was it because of the defeat in 2011? At the end of the day, it is taxpayer $ and it is rather stupid if they don't use it before 2016.

Matilah_Singapura said...

Vote buying is a damn class strategy: You use taxpayer money to BRIBE taxpayers, who then vote for you so you can tax them again to buy more votes the next time.

I like it. I think the govt should give away more goodies. Why stop at 8 billion? Double or tripe that. Then you can "buy" yourself a LANDSLIDE!

Do it, fuckers. Dun scared scared....

Anonymous said...

Fake foreign talents think it is not easy for PAP to catch them.

Opposition parties and most Sinkies think it is not easy to defeat PAP in elections.

Matilah_Singapura said...

@1022:

I agree. It is highly improbable to DEFEAT the PAP outright. However it is still very possible to win wards to ERODE their parliamentary monopoly.

Nothing lasts forever. I doubt any party can steal 2016 from the PAP. However in the future, if the opposition has their shit together, yes, for sure, they can kick the PAP's ass out.

The key is to "have their shit together". At the moment, they don't, and there is not yet any indication that they're "working hard at it".

b said...

They are very fond of this kind of dirty scheme. Give you $5 but take back $50 down the road. Still wan to con people using this kind of old tactics? Traitor DNA runs in the family.