The actual amount that CPF members pay into Medisave would be somewhere in between, between $7,751 million and S$14,407 million. As the PAP government has chosen not to be transparent about the figures, this is the best estimate we are able to get.
Accordingly, this would mean CPF members only withdrew between 6.6% and 12.0% of what they paid into Medisave in 2016 for direct medical expenses (using S41,407 million and S$7,751, respectively, for comparison).
For the purposes of the video – for ease of comparison, the figures are rounded up to show that CPF members are using only 5% to 10% of what they paid into Medisave every year for actual direct medical expenses.
This would mean that what CPF members pay into Medisave in 2016 (between $7,751 million and S$14,407 million) would be enough to cover for the government health expenditure.
Or in other words, what CPF members are paying in Medisave can cover for the whole amount the government uses our taxes to pay for healthcare.
The first question then is, why is the government making Singaporeans pay for taxes, and then for Medisave, when Singaporeans are already paying enough for either to pay for this portion of healthcare – noting that in Medisave, we are even only being returned 5% to 10% of what we pay in a year, for actual direct medical expenses?
Is the Singapore government then making Singaporeans double pay for healthcare?
Based on an IPS study, about 5% of the total health expenditure in Singapore is covered by Medisave.
In other words, CPF members are only able to access only 5% to 10% of what they pay into Medisave for direct medical expenses, and this only covers for 5% of total health expenditure.
The IPS study also showed that MediShield (another healthcare scheme) only covers for 2.1% of total health expenditure.
World Health Organization figures also show that Singaporeans pay another 30% out of their own pockets for the total healthcare expenditure.
30% is 6 times the 5% that Medisave covers for.
This means that if the Medisave actually used to pay for direct medical expenses, is increased by another 6 times to pay for the current out-of-pocket expenditure that Singaporeans are paying, it would be able to give free healthcare for Singaporeans today.
Even by increasing it by 6 times, we would still be using only about 40% to 80% of Medisave for medical expenses (using S41,407 million and S$7,751, respectively, for comparison), and be able to still save enough inside the Medisave to allow it to accumulate, for longevity purposes.
However, instead, the Singapore PAP government chooses to let Singaporeans only access 5% to 10% of the Medisave they contribute in a year for direct medical expenses, and then make Singaporeans pay another 30% for out-of-pocket expenditure.
In effect, the Singapore PAP government is making Singaporeans double pay for healthcare.
This means that of the S$931 million that CPF members are able to retrieve for direct medical expenses, this is only 1.1% of the total Medisave balance that has been accumulated since 1984.
In sum, for the Medisave, CPF members are only able to use 5% to 10% what they pay into Medisave a year for direct medical expenses, and only 1% of the total Medisave balance, for medical direct expenses.
But what the Medisave balance has accumulated as of 2016 would be about 4 to 5 times the total health expenditure in Singapore in 2016.
In other words, the total Medisave balance would be sufficient to give free healthcare to Singaporeans for 4 to 5 years, or more.
Or, if excluding for the taxes Singaporeans already pay for healthcare, the total Medisave balance would have been sufficient to give Singaporeans free healthcare for 8 to 10 years, or more. (this is not mentioned in the video)
Other than the direct medical expenses, CPF members’ Medisave is also withdrawn to pay for MediShield Life premiums (S$999.3 million) and another S$1,064 million is also withdrawn for premiums for other schemes, such as ElderShield (S$1,995.4 million – S$934 million), or a total of S$2,063.7 million that is withdrawn to pay for MediShield Life and ElderShield premiums, etc. https://www.cpf.gov.sg/Assets/common/PublishingImages/CPFStatistics/Sub_Healthcare.jpg
This amount is more than 2 times what Singaporeans get to use for actual direct medical expenses.
But the question is – if Medisave is already enough to cover for Singapore’s health expenditure, if risk-pooled, then why are Singaporeans made to pay for additional schemes, where the premiums could be 4 times more than what CPF members are actually able to get back in terms of actual medical expenses?
If the money paid into premiums are directly used to cover for direct medical expenses, it would reduce Singapore’s out-of-pocket expenses drastically.
Instead, since CPF members are able to only access 1% to 10% of their Medisave for direct medical expenses, the PAP government gets to take 90% to 99% of the Medisave to earn, by channelling the Medisave surplus into government bonds, and then into the national reserves, and into GIC, of which Temasek Holdings has access to this money, to let them earn, which has helped them become the top 10 richest sovereign wealth funds in the world. https://www.swfinstitute.org/fund-rankings/sovereign-wealth-fund
On top of it, there is very little transparency in how the GIC and Temasek are using Singaporeans’ Medisave to earn, and what they are investing it in, or how much they are earning using Singaporeans’ monies.
Finally, Singapore residents are also paying an additional of $1.42 billion for private insurance Integrated Shield Plans.
In summary: (1) Singaporeans are paying enough into Medisave which would allow Singaporeans to have free healthcare every year. (2) Instead, the PAP government makes Singaporeans pay another 30% for out-of-pocket healthcare expenditure. (3) The PAP government then makes Singaporeans another 2 to 4 times more what is taken out of Medisave for direct medical expenses, for other healthcare schemes like MediShield Life and ElderShield premiums, etc, when there is no need for other healthcare schemes, because what is paid into Medisave is already enough to let Singaporeans have free healthcare, if risk-pooled. And after paying for these premiums, MediShield still covers for only 2% of Singapore’s total health expenditure. (4) As a result, Singaporeans have to also pay additional in private healthcare insurance, because their Medisave is not returned to them.
In sum, Singaporeans are double-paying into healthcare every year, and the PAP government knows this.
Singaporeans today can have free healthcare if their Medisave is returned to them. Instead, the PAP government has chosen to take 90% to 99% of Singaporeans’ Medisave to earn, and to let the GIC and Temasek Holdings become the top 10 richest sovereign wealth funds in the world, while Singaporeans have to pay one of the most expensive out-of-pocket healthcare expenditure in the world.
The question you have to ask is – is this fair?
As Lee Hsien Yang asked, “is this the kind of government that you want”, that turns you into their guinea pigs, for them to slice you up and to earn from you?
That turns you into their money trees, while you become poorer and poorer?
IT expert with more than 20 years experience in Multiple OS, Security, Data & Internet ,
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