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BHS increase to $52K from 1 Jan 2017

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Old 29-12-2016, 10:20 AM   #1
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BHS increase to $52K from 1 Jan 2017

Oh well, gotta continue to save...

From Jan 1, 2017, the Basic Healthcare Sum (BHS), the estimated savings required for basic subsidised healthcare needs in old age, will be raised to S$52,000 for those who turn 65 years old in 2017, and it will be fixed for the rest of their lives. Those aged 66 and above in 2017 have their BHS fixed at $49,800 for their cohort.
http://www.todayonline.com/singapore...hanged-q1-2017
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Old 29-12-2016, 07:56 PM   #2
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Oh well, gotta continue to save...



http://www.todayonline.com/singapore...hanged-q1-2017
I'm surprised the increase is more than its 4% interest
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Old 30-12-2016, 09:53 AM   #3
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I'm surprised the increase is more than its 4% interest
Yeah slightly. prob to the nearest '000.

Then I realised for those who already hit the last cap (49,800), once the interest comes in, can almost met the BHS again. so can continue the overflowing.
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Old 30-12-2016, 10:50 AM   #4
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Medisave is a black hole... money goes in and gets stuck for life. No flexibility in usage as it can only be used for medical needs.
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Old 30-12-2016, 12:19 PM   #5
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Yeah slightly. prob to the nearest '000.
Bingo, you got it.

49849 would round down to 49800. 51149 would round up to 52000. If the underlying increase was actually 49849 to 51149 then that's about +2.61%. So, in all likelihood, $52,000 is the result of a 4% increase with both the prior and new numbers rounded to the nearest $100 increment, and with the to-the-penny underlying amounts calculated from a base year figure.
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Old 30-12-2016, 12:31 PM   #6
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Medisave is a black hole... money goes in and gets stuck for life.
No, that's not correct. Compulsory MediShield Life premiums drain some of your MA every year. If you have dependents, their premiums typically do, too. Those premiums, if nothing else, unstick those funds.

No flexibility in usage as it can only be used for medical needs.
And medical insurance.

Nobody has zero medical expenses. MediShield Life premiums, if nothing else, make sure of that. Assuming adequate emergency funds on hand, and assuming the MA isn't too big (it can't be -- it's capped at the BHS), and assuming you're happy with the yield (>4%, plus the tax savings), at least for that (extremely safe) portion of your total portfolio, the lack of flexibility shouldn't matter too much precisely because you're invariably going to have medical expenses. "Gee, you have to save something for future food consumption. That's not flexible!" Uh, OK, I suppose it isn't, but I plan to eat next year, next decade, and beyond.

Also, if you terminate your citizenship or permanent residence, Medisave funds are immediately, optionally available for withdrawal for any purpose. It's a choice.

When you die, if there's money left over in your MA, it goes to your nominated heir(s). And you should nominate somebody, or some organization, to receive every penny of your remaining CPF. You might end up in a black hole, but your CPF monies don't.
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Old 30-12-2016, 12:37 PM   #7
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Cpeef like to put this on their website.



But MA mostly use to buy insurance or pay Medishit Life.

Outpatient claims can only use $200/yr from MA.. and 52k can last aro 260yrs.
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Old 30-12-2016, 01:08 PM   #8
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Outpatient claims can only use $200/yr from MA.. and 52k can last aro 260yrs.
No, you forgot the MediShield Life premiums in that calculation. By age 150 the annual premium is pretty high.

There's another part you forgot (as a "young invincible"?): outpatient claims aren't the only medical expenses! As an example (and you might not remember), was your very first day spent at the cinema or in a maternity ward at a hospital?

But OK, go howl at this moon if you want. Here on Planet Earth people really do need medical care. It's probably about 5% of total GDP in Singapore now, and that ain't zero. When you do that math, $52K is a very reasonable number. (And most people don't get that high, unfortunately.)
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Old 30-12-2016, 01:23 PM   #9
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Nobody has zero medical expenses. MediShield Life premiums, if nothing else, make sure of that. Assuming adequate emergency funds on hand, and assuming the MA isn't too big (it can't be -- it's capped at the BHS), and assuming you're happy with the yield (>4%, plus the tax savings), at least for that (extremely safe) portion of your total portfolio, the lack of flexibility shouldn't matter too much precisely because you're invariably going to have medical expenses. "Gee, you have to save something for future food consumption. That's not flexible!" Uh, OK, I suppose it isn't, but I plan to eat next year, next decade, and beyond.

Also, if you terminate your citizenship or permanent residence, Medisave funds are immediately, optionally available for withdrawal for any purpose. It's a choice.

When you die, if there's money left over in your MA, it goes to your nominated heir(s). And you should nominate somebody, or some organization, to receive every penny of your remaining CPF. You might end up in a black hole, but your CPF monies don't.
My father's MA is about 9k mainly from government.

He never use medisave before except for the first time last year when he was 88yo!!!.

And now he has to pay MSL of 615 (if no further increase) from his MA annually!!! But that's a blessing to me as I have not bought him any medical insurance, even though I have never incurred any medical bill on his health.
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Old 30-12-2016, 01:34 PM   #10
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re BHS increase, MOH has said that:

"The BHS will therefore be adjusted yearly in January to keep pace with the growth in Medisave use by the elderly." Source

It's not a straightforward 4% increase every year.
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Old 30-12-2016, 01:41 PM   #11
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Medisave is a black hole... money goes in and gets stuck for life. No flexibility in usage as it can only be used for medical needs.
even medical needs also got limits. sigh.

So I just hope to quickly max the requirements so that money flow to other account.
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Old 30-12-2016, 01:48 PM   #12
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My father's MA is about 9k mainly from government.
OK, so it's mainly a gift from other taxpayers (some foreign). There's nothing bad in that!

He never use medisave before except for the first time last year when he was 88yo!!!.
OK, but you can't expect the government to have a national program with near-universal participation based on the medical experiences of one lucky 88 year old. Who won't be lucky forever (we all die, eventually), and medical spending is heavily concentrated at end of life. Not in every individual case, of course. It's possible to die suddenly, skip medical care (and medical expenses), and proceed directly to the funeral. Or not.

And now he has to pay MSL of 615 (if no further increase) from his MA annually!!!
Yes, paid mostly out of a gift from other taxpayers in his case.

But that's a blessing to me as I have not bought him any medical insurance, even though I have never incurred any medical bill on his health.
And that's a key point. MA isn't only about the account holder. It's about his/her heirs, too. If somebody you care about (parent, grandparent) exhausts his/her savings -- easy to do with just a short time in the hospital or hospice -- then who takes care of mom, dad, grandpa, or grandma? The kids or grandkids, usually. So their income and wealth is impacted.

So if you have nobody (or no cause) you care about beyond yourself -- no children, no grandchildren, no charity -- then I suppose you could complain about MA (but demand free medical care anyway ). But again, government can't make a national program only for the minority with no intergenerational or other legacy considerations. And denying necessary medical care to Singaporeans is not something anybody rational wants. So, there's a medical financing system, and part of it is MA.

Another possible choice is to do what a lot of other countries do, have at least a single government payer (paid out of general tax revenues), and just pay the medical expenses for all medical care deemed necessary, probably with modest co-pays (reduced or waived for lower income Singaporeans). That'd be another option. It'd be simpler, at least. But the government hears a constant barrage of "personal responsibility" advocates -- as if a virus knows how careful you've been in your investment portfolio! -- and so we've got personal Medisave Accounts, and an extremely basic and compulsory MediShield Life. And clearly the government still can't make everyone happy.
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Last edited by BBCWatcher; 30-12-2016 at 01:51 PM..
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Old 30-12-2016, 01:49 PM   #13
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even medical needs also got limits. sigh.
And so does your Medisave account: $52,000 in 2017. Funny how that works!
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Old 30-12-2016, 02:00 PM   #14
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My father's MA is about 9k mainly from government.

He never use medisave before except for the first time last year when he was 88yo!!!.

And now he has to pay MSL of 615 (if no further increase) from his MA annually!!! But that's a blessing to me as I have not bought him any medical insurance, even though I have never incurred any medical bill on his health.
For those at 88yo he may pay Medishit Life $615/yr but can only claim $530 from MSL. The rest use MA to pay.

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Old 30-12-2016, 02:11 PM   #15
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If one doesn't make a nomination, then the funds will go to the Public Trustee who will administer in accordance to intestacy law. AND...there's an admin fee of approx 1.5% of the funds that will be charged. So if you have a modest balance of $200k in your CPF, that's $3k just because you didn't fill in a nomination form.

No, that's not correct. Compulsory MediShield Life premiums drain some of your MA every year. If you have dependents, their premiums typically do, too. Those premiums, if nothing else, unstick those funds.


And medical insurance.

Nobody has zero medical expenses. MediShield Life premiums, if nothing else, make sure of that. Assuming adequate emergency funds on hand, and assuming the MA isn't too big (it can't be -- it's capped at the BHS), and assuming you're happy with the yield (>4%, plus the tax savings), at least for that (extremely safe) portion of your total portfolio, the lack of flexibility shouldn't matter too much precisely because you're invariably going to have medical expenses. "Gee, you have to save something for future food consumption. That's not flexible!" Uh, OK, I suppose it isn't, but I plan to eat next year, next decade, and beyond.

Also, if you terminate your citizenship or permanent residence, Medisave funds are immediately, optionally available for withdrawal for any purpose. It's a choice.

When you die, if there's money left over in your MA, it goes to your nominated heir(s). And you should nominate somebody, or some organization, to receive every penny of your remaining CPF. You might end up in a black hole, but your CPF monies don't.
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