Basic Healthcare Sum

According to the CPF’s definition, The Basic Healthcare Sum (BHS) is an estimate of what you need to save up for your basic subsidised healthcare needs in old age, and will be set at $49,800 from 1 January 2016 for all CPF members.

 

With effect from 1 Jan 16, the Medisave Minimum Sum of $43,500 in the CPF will be converted to a new scheme called the Basic Healthcare Sum and this would be fixed at $49,800 for life. There shall be no further increases unlike the Medisave Minimum Save when the principle of moving target was applied, ie, it can go up and up at the discretion of whoever deems fit. Hopefully this $49,800 jail house rock payment would not be raised again but there is no guarantee that this would be the case.

 

So it seems that the ransom to be paid to the govt is settled as far as the $49,800 lock up sum is concerned. But does anyone want to know why is there a need for this Basic Healthcare Sum when everyone is already covered by a Medishield Life Scheme? Is it not that the Medishield Life Scheme is to provide basic healthcare protection for the citizens, from birth to death? Why is there another need to set aside another $49,800 in the Basic Healthcare Sum to provide for basic healthcare needs? Is this not double coverage, double payment for basic healthcare protection?

 

Another question, why is this new change imposed regardless of the age of the CPF contributors? What happens is that someone at 30 or whatever age, will have to top up his Basic Healthcare Sum to $49.800. A person in his 60s, 70s, 80s or older, would also be expected to have a similar sum of $49,800 locked up. Is there anything wrong, illogical about this? Those who have passed their CPF age would have many computations of higher contributions frozen when they hit 55 or whatever the cut off point. Why is this Basic Healthcare Sum be applied retrospectively to everyone regardless of age? I hope I am wrong on this, but no qualifications on this so far.

 

Shouldn’t those who are already withdrawing their CPF savings under the older regulations be left untouched or their Basic Healthcare Sum be at $43,500 at most? What kind of thinking or reasoning is behind this? What’s wrong with collecting more money? With the Medishield Life Insurance Scheme, there should be no need for the Basic Healthcare Sum.

Let’s return to the concept and purpose of Medishield Life.  What is MediShield Life? Below is CPF’s definition:

‘MediShield Life, similar to MediShield, is an individual basic universal healthcare insurance scheme which helps to pay for large hospital bills and expensive outpatient treatments, such as dialysis and chemotherapy for cancer. It targets Class B2/C wards and subsidised treatment in public hospitals….

MediShield Life provides better protection for all Singapore Citizens and Permanent Residents for life, regardless of age or health condition.’

Should not the Medishield Life protection be enough for the CPF contributors?  What the hell is this Basic Healthcare Sum for? It is definitely not another health insurance scheme and there is no mention of the benefits that it is supposed to provide. It is just like a protection money to be held at ransom.

 

Can anyone enlighten on this Basic Healthcare Sum and why should there be such a big sum of money to be retained when everyone is already covered and protected by the Medishield Life Insurance scheme?

How much more or how many more insurance schemes should the people be made to pay for? Paying Medishield Life for life not enough, still need to have $49,800 lock up for life? What are its uses and what would happen to this sum of money after the CPF contributor passes away? What kind of interest rate is this sum getting?