If you have been following the news closely, the issue of Means Testing has dominated the local front page for several days.
The Context
Means Testing is a scheme introduced by the Ministry of Health (MOH), its purpose being to appropriately allocate limited healthcare resources in Singapore. Means testing will be based on salaries declared in tax or CPF returns [for salaried workers] and housing type [for the retirees, children and unemployed].
Why the need for Means Testing?
Patients going to the hospitals routinely ask for the senior consultants in the mistaken belief that their chances of recovery is guaranteed; however, they fail to recognise that the minor ailments that they are suffering from can be treated just as effectively by the other [albeit less, junior] doctors. This has resulted in long queue-lines for all patients and MOH is looking towards improving this aspect of patient care.
Economists normally have 2 solutions for this phenomenon – either raise the price until supply equals demand, or let the queue mechanism sort itself out. Those who can afford to pay but cannot afford to wait will naturally leave the queue.
However, to apply this principle, ceteris paribus, to healthcare might result in some unpleasantness. Means Testing is the proposed solution: by allowing people who can afford to take up the better-class wards, we’ll be able to free up the remaining wards. This would also mean that we will be able treat more people, thus freeing up queue-lines. At least, this is the ideal case scenario.