Debated in Parliament on 6 Jul 2023.
Mr Gerald Giam Yean Song asked the Minister for Health (a) whether there are plans to increase the means-testing thresholds for annual values of properties (AVs) given that IRAS has revised the AVs upwards on 1 January 2023 to reflect the rise in market rents; and (b) why is the Ministry not using the AVs as of 2022 for the purpose of means-tested healthcare subsidies for households with zero per capita household income (PCHI).
Mdm Deputy Speaker,
Given the 2023 increase in AVs, the Ministry of Finance (MOF) had previously informed that social support schemes, including the AV thresholds, will be reviewed. An update will be provided later this year. Individuals who face difficulties in paying for their healthcare expenses due to a change in their AV under such circumstances, may approach their respective healthcare institution or provider for assistance.
Mr Gerald Giam.
I thank the Senior Parliamentary Secretary for her reply as well as the Senior Minister of State for Finance for his reply earlier. Can I confirm with the Senior Parliamentary Secretary that MOH has not been using the 2023 AVs for all its social support and means-testing?
Secondly, will MOH consider removing the AV component for households with no income, since these are retiree households, often with a family member who is severely unwell and is seeking medical treatment?
Alternatively, can MOH consider raising the AV threshold beyond $13,000 so that more Housing and Development Board (HDB) flat dwellers will not be excluded from the means-testing subsidies? Lastly, can I confirm that as long as a household is earning $1.00 or more, they are not subject to the AV criteria for the purpose of means-testing?
There are quite a few questions. My response may not be in order. But I just wanted to confirm a few things.
Firstly, the Member had asked about whether we are still using the AV as at 31 December 2022, I confirm that. But I note there may be applicants who are living in new residences which do not have an AV for 2022. So, the benchmark is 2023. But there are processes in place to ensure that they will not be shortchanged and all those HDB households with zero per capita household income will not be made worse off because of this discrepancy in the AV; they will continue to receive the same amount of subsidies.
On the Member's point of considering to remove this, this is a broader point that we are looking at. The AV still remains a proxy of the means for the households and it is something that we still use to assess the support required.
As the Member would know, actually, there are also other subsidies and support which we offer to others who may be asset-rich but cash-poor, including non-means tested support in other schemes. For instance, those who are aged 65 and above receive higher subsidies of 75% at polyclinics, regardless of means; and for those who are in the Pioneer Generation and Merdeka Generation, these seniors also receive benefits, regardless of their per capita household income or the AV of their residence, such as subsidies for MediShield Life premiums, MediSave top-ups and higher subsidies at outpatient care.
So, these are things in place. And as I have mentioned earlier, if any of them are facing difficulties, they can always approach their healthcare providers and we will do our best to assist.
Mr Gerald Giam.
So, can I just confirm with the Senior Parliamentary Secretary, for those residents who do not have a 2022 AV, how does MOH ensure that they are not worse off? Can they appeal on the basis of their previous AV or something else that can be used as a proxy?
Secondly, I am not sure if the Senior Parliamentary Secretary has answered the question about the households that have $1.00 of income. Will they still be subject to the AV criterion?
I think on the second question, there is going to be a cut-off somewhere. But how we apply it is really about trying to assess and see if they do have needs. I do not think it is done in a manner that is unfair and draconian to the recipients.
On the first point, there are back-end processes that make sure that they are supported. But if there are appeals, they will definitely be looked at. If it is zero per capita household income, we will definitely provide the same subsidies as per the others.
PAPERCUTS