Singapore Budget 2014 delights pioneer generation

Singapore’s budget for 2014 has drawn a warm response from the estimated 450,000 “pioneers” targeted to benefit from a massive healthcare assistance package.

Deputy Prime Minister Tharman Shanmugaratnam announced in his Budget speech in Parliament on Friday that upwards of S$9 billion would be spent to provide affordable healthcare to the pioneer generation, those who were 16 during the year of the country’s independence and obtained citizenship on or before 31 December 1986.

Some of the benefits they will receive include Medisave top-ups ranging from $200 to $800 per year, depending on their age, and 50 per cent discount off subsidised services at specialist outpatient clinics (SOCs) and polyclinics.

“These special benefits that we are providing the Pioneer Generation will not be differentiated by income because our objective is to honour the contributions of this whole generation. However, members of the Pioneer Generation who are less well-off will benefit more where there are higher underlying subsidies for all lower-income Singaporeans – such as at the SOCs,” he said.

The new package has received positive reaction from some of those who are eligible.

Saemah Sujak, 68, said in Malay, “I think the top-ups will help in covering short-term medical bills. Not for the long run of course. Also, since the Medishield Life Premium is a lot more affordable now, I would consider replacing my current insurance scheme with it.”

Saemah currently holds a private health insurance scheme, which she normally uses to pay off her hospital bills.

Also under the pioneer generation package, the Medishield Life Premium will now be subsidised by 40 per cent for those aged 65 and above. Those aged 90 and above get a 60 per cent subsidy.

Saemah, who goes for regular blood pressure and diabetes check-ups, said the insurance scheme will help her to save more money in the long run.

Mona Ong, 67, also said that she will consider replacing her current private insurance scheme with the Medishield Life Premium as it is now affordable. 

“I am quite surprised that they have included those aged 65 and above in this package. I thought they would only allow those above 70-years-old… I think this is generous of them,” said Ong.

Tan Han Chew, 67, who goes for regular kidney check-ups, explained in Hokkien that the government has done more than enough to help the senior citizens in Singapore.

Together with the help from the Public Assistance Scheme and his Medisave, Tan feels assured that he will be able to cover his medical bills for a very long time.

According to the director of healthcare and pharmaceutical at PwC Singapore, Ajay Sanganeria, "The approach to provide full provision for Pioneer Generation Package in 2014 itself is a very mature approach as it provides much needed 'assurance' (on top of insurance) to old Singaporeans that they will continue to receive benefits irrespective of cyclical changes in the economy. There is no better time than now to take this approach to save for the 'rainy days' which are looking more likely to come for Singapore in the area of healthcare as the population age and healthcare costs are expected to rise."