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THURSDAY, MARCH 28, 1985
+A BASIC MINIMUM PREMIUM CAN BE WORKED OUT WHICH EVERYONE MUST PURCHASE AND THE INSURANCE COMPANY, ON BEHALF OF THE INSURED MUST REPAY GOVERNMENT, AT THE RATES OF CHARGES ESTABLISHED BY GOVERNMENT FOR THIRD CLASS SERVICE, AT COST SUCH THAT IN FACT, THE INSURED WILL RECEIVE FREE UNLIMITED CONSULTATIONS AND TREATMENT.
+ANYONE IS AT LIBERTY TO PURCHASE MEDICAL INSURANCE AT A HIGHER PREMIUM AND CAN ENJOY PRIVATE MEDICAL SERVICES OR FIRST AND SECOND CLASS SERVICES AT GOVERNMENT HOSPITALS AT HIGHER RATES OF CHARGES,+ DR I ELABORATED.
+THIS PROPOSAL IS A MAJOR CHANGE, THE FEASIBILITY WILL TAKE TIME TO WORK OUT AND IT MUST BE PHASED IN, BUT I SEE THIS AS BEING INEVITABLE, SHE ADDED.
ON THE MERITS OF THE SCHEME, SHE SAID THAT OTHER THAN BE ING A METHOD TO RAISE REVENUE FOR GOVERNMENT, IT WOULD ALSO OFFER THE OPTION TO THE BETTER-OFF PUBLIC TO GO FOR PRIVATE MEDICAL SERVICES THEREBY REDUCING THE OVERCROWDING THAT EXISTED IN GOVERNMENT HOSPITALS.
IT MIGHT ALSO BRING DECENTRALISATION, FINANCIAL INDEPENDENCE, FLEXIBILITY AND COMPETITIVENESS TO THE GOVERNMENT AND GOVERNMENT SUBVENTED HOSPITALS IN THAT THEY COULD GENERATE THEIR OWN FUNDS THROUGH STANDARDISED PAYMENT OUT BY MEDICAL INSURANCE.
+MY PROPOSALS ARE IN LINE WITH THE CONCEPT OF MY HONOURABLE COLLEAGUE, DR HARRY FANG, NAMELY, THE INCREASE IN MEDICAL CHARGES, PRIVATISATION, BLOCK GRANTS TO HOSPITALS, FLEXIBILITY IN MANAGEMENT
AND DECENTRALISATION.
+ IN THE PHASING IN OF THIS, GOVERNMENT NEED NOT CHARGE
THE FULL RATE, BUT AIM AT MEETING HALF ITS RECURRENT EXPENDITURE. THE INSURANCE PREMIUM WILL THEN BE AT A LEVEL MORE ACCEPTABLE TO THE PUBLIC, SHE SAID.
+LASTLY, A RECOGNISED MEDICAL INSURANCE SCHEME WHICH GOVERNMENT CAN INITIATE WOULD PAVE THE WAY TO A MORE STANDARDISED CHARGE BY PRIVATE PRACTITIONERS, SHE SAID.
TURNING TO THE SUBJECT OF FRINGE BENEFITS AND ITS METHOD OF TAXATION, DR IP SAID OVER THE YEARS, THE VALUE AND THE VOLUME OF THESE NON-TAXABLE FRINGE BENEFITS HAD GRADUALLY INCREASED TO A POINT WHERE IT WAS CAUSING SIGNIFICANT INEQUITY.
SHE SUGGESTED THAT GOVERNMENT SHOULD CONSIDER TO TAX FRINGE BENEFITS AT THEIR TRUE VALUE WHEREVER THIS COULD BE WORKED OUT AND DONE SIMPLY, THUS BROADENING THE TAX BASE AND THROUGH THIS KEEPING THE OVERALL PERCENTAGE OF THE TAX RATE LOW.
/AS A