Monday, September 14, 2009

Means Testing

Someone asked if a high income person can still use the subsidised wards (B2 and C).

The answer is "yes". They will be given a lower rate of subsidy. Currently, the subsidy varies from 80% to 65% for class C and from 65% to 50% for class B. See the explanation here.

Basic Medishield should be sufficient to cover the cost of the subsidised bill, even though the rate of subsidy is lower for a high income person. Even if it does not cover the full amount, the difference is quite small.

Most retirees and elderly people have a low or no income and should qualify for a higher of subsidy anyway.