CMFAS HI Healthcare System & Financing question: MediFund operates

CMFAS HIHealthcare System & Financing

Which statement correctly describes how MediFund operates?

A Only interest income on the capital is used, via MediFund-approved institutions whose committees decide the assistance quantum
B Both the capital and the interest are spent each year, with MOH deciding every applicant's assistance centrally
C Cash payouts are sent by the CPF Board directly to every lower-income Singapore Citizen's MediSave Account each year
D It is funded by compulsory monthly wage contributions, with hospital committees deciding each applicant's assistance quantum

Show the answer and explanation

Answer: A. Only interest income on the capital is used, via MediFund-approved institutions whose committees decide the assistance quantum

MediFund is an endowment fund; only the interest income on the capital is used, distributed to MediFund-approved institutions whose independent MediFund Committees decide the quantum of assistance for each needy applicant.

Common mistake

The capital is preserved — only the interest is spent, and MediFund is not a wage-funded scheme nor a universal cash payout.

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CMFAS HI Healthcare System & Financing question: MediFund operates

Answer: A. Only interest income on the capital is used, via MediFund-approved institutions whose committees decide the assistance quantum

Common mistake

Related CMFAS HI questions

CMFAS HI Healthcare System & Financing question: MediFund operates

Answer: A. Only interest income on the capital is used, via MediFund-approved institutions whose committees decide the assistance quantum

Common mistake

Related CMFAS HI questions