Medisave arrears
- Country:
- Singapore
- Partner Institute:
- Department of Epidemiology and Public Health, National University of Singapore
- Survey no:
- (8)2006
- Author(s):
- Lim Meng Kin
- Health Policy Issues:
- Funding / Pooling
- Reform formerly reported in:
Enforcing Medisave self-employed contributions
Current Process Stages
| Idea | Pilot | Policy Paper | Legislation | Implementation | Evaluation | Change | ||
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| Implemented in this survey? |  |
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Abstract
Although no action has actually been taken against self-employed persons with outstanding arrears in Medisave contributions, a threat to take action against them by the Central Provident Fund Board in 2004 has resulted in an increase of 24,000 (or 10 per cent) making payments, compared to the numbers as at 31 Dec 03.
Recent developments
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Characteristics of this policy
 current  previous
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Purpose and process analysis
Current Process Stages
| Idea | Pilot | Policy Paper | Legislation | Implementation | Evaluation | Change | ||
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| Implemented in this survey? | |
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Monitoring and evaluation
As at 30 April 06, 262,000 or 86 per cent of self-employed persons who are liable to pay outstanding Medisave contributions have made or are making payments towards their Medisave. This is an increase of 24,000 or 10 per cent, compared to the numbers as at 31 Dec 03.
The numbers of self-employed defaulters and the amount in arrears have also decreased. In Dec 2003, 117,000 self-employed persons owed $444m in arrears to their Medisave accounts. For this group of self-employed persons, the numbers have since dropped to 82,000 and $367m respectively.
The Central Provident Fund (CPF) Board, which administers the Medisave Scheme, has disclosed that those who failed to make timely contributions include doctors, lawyers, insurance agents, taxi-drivers and hawkers. Under Singapore's laws, all self-employed persons who earn a yearly net trade income of more than Sing$6,000 must contribute to their Medisave accounts.
The Board had suffered a negative public backlash when it suddenly threatened in 2004 (see survey no.(4)2004) to take legal action against those who continue to ignore reminders. First time offenders, according to the CPF Act, are liable to be fined up to Sing$2,500 and up to Sing$10,000 for subsequent offences.
The Board has now disclosed that to date, it has not taken any legal action against such self-employed persons as some may have difficulty paying the backlog of Medisave contributions in one lump sum. It again stressed that it was prepared to allow a small upfront payment followed by installment payments.
Expected outcome
References
Reform formerly reported in
| Enforcing Medisave self-employed contributions Process Stages: Implementation |
Author/s and/or contributors to this survey
Lim Meng Kin
National University of Singapore