Andrea:
So it basically monitors what you spend.
Dr. Lim:
Sure, because it’s your money. However, because MediSave is designed to last you a lifetime, there should be limits and restrictions on what MediSave can (and cannot) be used for.
And so what the Department of Health then does is…look at it from a population point of view and figure out (what) is worth paying for (and what’s not) worth paying for, because we need to expand MediSave across the lifespan.
So, I’m afraid you have to tell your neighbor that MediSave can, and does, pay for many procedures (and) many outpatient tests, but it cannot be comprehensive. But this list is constantly under review, so it will continue to evolve, and… (it’s) always good to provide feedback.
Andrea:
But the thing is, there will be instances where we will draw on our… our MediSave funds. So what are the upsides and downsides of increased use of MediSave when it comes down to it?
Dr. Lim:
Well, the upside is that we have a nest egg that we had to save, which is good. And (at) 4 percent, until interest rates rose relatively recently, MediSave was a really good deal. I would actually tell my relatives if you have cash, pay for it yourself rather than using MediSave, because no one is going to give you a guaranteed 4 per cent return.
But of course, that whole dynamic…changed. But actually, MediSave, as the discretionary part, gives you optionality. Another thing worth noting about MediSave is that it is intergenerational, which means MediSave can be used for another first-degree relative.