If the investment returns for CareShield Life can be returned to members – why can’t CPF investment returns be the same too?
I refer to the article “Insurance fund which will be ringfenced for CareShield Life to be set up: Gan Kim Yong” (Channel NewsAsia, Jul 11).
It states that “The Government will set up an insurance fund which will be ringfenced for CareShield Life, a new disability insurance scheme to be launched in 2020, Health Minister Gan Kim Yong said on Tuesday (Jul 10).
The fund will be administered by the Central Provident Fund (CPF) Board, and be audited annually to ensure that all the monies are accounted for he added.”
Also, Singapore workers contribute up to 10.5 per cent of their wages to Medisave.
This I believe is in a sense, from a cashflow perspective – probably the highest national health insurance contribution (pre-pay basis) in the world.
From a cashflow perspective – the Government may still not be spending any money on healthcare, as total annual Medisave contributions plus the annual interest on total Medisave accounts’ balances may exceed total annual government spending on healthcare and withdrawals for medical expenses and insurance premiums.
With regard to “The Government will inject S$100 million into the CareShield Life insurance fund.
This is to cover a “significant portion” of the costs of including Singaporeans in the future cohorts with preexisting disabilities, said Senior Minister of State for Health Amy Khor.
The Government will also set up an independent council to provide advice on the administration of the scheme, he said. The council will also regularly review CareShield Life and recommend premiums and payout adjustments to the Government, in accordance with an actuarially sound adjustment framework, he added” – why not make the actuarial reports for CareShield Life, CPF Life and MediShield Life public information?.
Leong Sze Hian