Singapore To Reduce Health Care Subsidies For Permanent Residents

Source: Government of Singapore
Posted on: 28th January 2010

Ministry of Health announced that the current healthcare subsidy for Permanent Residents (PRs) will be reduced by 10 percentage-points.

This will sharpen the distinction between privileges enjoyed by citizens and PRs. By 2012, there will be a 20 percentage-point differential in healthcare subsidies between citizens and PRs.

Citizens, Permanent Residents (PRs) and foreigners are charged differently for healthcare services.

Citizens enjoy heavy subsidy in Class B2 and C wards. PRs receive significant subsidy while foreigners are not subsidised at all. The subsidy distinction reflects the privileges of citizenship, but there is scope for refinement.

To further sharpen the distinction between citizens and PRs, MOH will reduce the current healthcare subsidy for PRs by 10 percentage-points. For example in Class C wards, citizens are subsidised at 80% of cost, while PRs, 70%.

MOH plans to reduce the subsidy for PRs in Class C wards to 60% of cost.

The reduction will be implemented in stages, to ease the adjustments for the PRs affected by this policy:

a. From 1 January 2011, the subsidy for PRs in the public hospitals (Class B2 and C wards) and specialist outpatient clinics will be reduced by 5 percentage-points.

b. From 1 July 2011, another 5 percentage-point reduction will apply in the public hospitals and specialist outpatient clinics.

c. From 1 July 2011, the subsidy for PRs in the intermediate and long term care sector (i.e. community hospitals, nursing homes etc) will be reduced by 5 percentage-points.

d. From 1 January 2012, another 5 percentage-point reduction will apply in the intermediate and long term care sector.

By 2012, there will be a 20 percentage-point differential in healthcare subsidies between citizens and PRs. Please see table below:

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