A total of $6.1 billion will be set aside for the Merdeka Generation Package, the bulk of which will go towards easing the burden of healthcare costs for nearly 500,000 Singaporeans.
Announcing details of the much-talked-about package yesterday, Finance Minister Heng Swee Keat called it a "gesture of our nation's gratitude" for those in that generation, who were born between Jan 1, 1950, and Dec 31, 1959.
"It will provide them better peace of mind over future healthcare costs, while helping them to stay active and healthy," he said.
Starting this year, those in the Merdeka Generation will receive a $200 Medisave top-up every year until 2023.
They will also get higher subsidies under the Community Health Assist Scheme (Chas) and an extra 25 per cent discount on their bills at polyclinics and public specialist outpatient clinics.
On top of that, they will get either 5 per cent or 10 per cent off their MediShield Life premiums, as well as an extra "participation incentive" of $1,500 if they choose to join the national disability insurance scheme CareShield Life.
And to support this group's active lifestyles, the Government will give them a one-off $100 top-up to their PAssion Silver cards. This money can be used to pay for public transport, entry to public swimming pools and activities at community clubs, among other things.
Mr Heng estimated that the package will cost more than $8 billion, in current dollars, over the Merdeka Generation beneficiaries' lifetimes.
The $6.1 billion set aside during this year's Budget will, with in-terest accumulated over time, cover the package's full projected costs, he said.
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500k
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Number of seniors who will benefit from Merdeka Generation Package.
The oldest people in the Merdeka Generation are now 69 years old, and they will be able to enjoy the benefits of the package for many years, Mr Heng said.
He added that the finance and health ministries took this into account when sizing the budget for these benefits.
"This is a significant commitment by the Government," Mr Heng said. "It is important that the Government of the day continues to monitor the patterns and cost of healthcare utilisation, and life expectancy over the next 30 years or more, so that the Government is able to meet this commitment."
The Merdeka Generation Package comes five years after $8 billion was set aside during Budget 2014 for the Pioneer Generation Package.
For those in the Merdeka Generation, Chas subsidies for common ailments, chronic conditions and dental procedures will be higher than what lower-income blue Chas card holders get.
They will be able to get these subsidies regardless of income, even if they do not have a Chas card today.
They will also receive an extra 5 per cent off their annual MediShield Life premiums, which will go up to 10 per cent after they turn 75.
And the new $1,500 bonus for joining CareShield Life means that they will get a total of $4,000 if they sign up for the insurance scheme, since the Health Ministry had previously announced a similar $2,500 sign-up bonus for people born before 1960.
Mr Heng said this money will cover a "significant proportion" of their premiums, adding that he hopes this will encourage more people to join the scheme.
Those who missed out on the Merdeka Generation and Pioneer Generation packages will also get extra help, he said.
Singaporeans aged 50 years and above this year, and who are not eligible for either package, will get an extra Medisave top-up of $100 a year for the next five years.
Those who were born in the 1950s and who obtained citizenship by 1996 will be eligible for the Merdeka Generation Package.
Those born in 1949 and earlier will also get the package if they missed out on the Pioneer Generation Package, as long as they obtained citizenship by 1996.
People who are eligible will be notified by April and start getting their Merdeka Generation cards from June. More details will be shared during the debate on the Health Ministry's spending plans.
