The proposed post-retirement medical savings fund was likely to be administered by the Mandatory Provident Fund Office, but it would take at least five years to work out details, government officials said yesterday.
Secretary for Health and Welfare Dr Yeoh Eng-kiong briefed the Hospital Authority board on the consultation document on health-care reform unveiled on Tuesday for a three-month consultation period.
It proposes individual health protection accounts to cover medical and dental bills after retirement. Each account would be for a worker and spouse with mandatory contributions from the individual of one to two per cent of earnings from ages 40 to 64. The savings cannot be withdrawn until the age of 65.
Dr Yeoh has insisted that the proposals will not be implemented overnight and that no drastic fees and charges are planned because the existing system is sustainable over the next decade. Instead, a major fee restructuring exercise is being considered to rationalise various service subsidies. A US expert will be named to help.
Dr Yeoh said people were coming round to the idea of saving for post-retirement medical needs, after an initial reaction that the proposal was unfair to low-income families. He said 'a floor and a ceiling' on incomes would be set for savings scheme members similar to the MPF.
Authority member Dr Raymond Wu Wai-yung chided Dr Yeoh for having 'a political objective to relieve certain pressures' when he did not set tighter timetables for the proposals. 'If we have to wait for 10 years, people will do nothing,' Dr Wu said.
