FOR $10 more a month, most people will no longer have to make huge out-of-pocket payments for big hospital bills.

Now, the MediShield insurance scheme pays only about 55 per cent of big bills in the subsidised B2 and C class wards. This means that a patient with a $10,000 bill has to fork out $4,500.

Health Minister Khaw Boon Wan wants the patient's share to be lower, at about 20 per cent. So he is almost doubling the maximum payouts.

Premiums will go up by less than $5 a month for those younger than 60 years, and by less than $10 for people aged 60 to 80.

For older people who are likely to require more hospital care, the premium is set to increase by less than $40 a month. Their current premiums range from $600-$705 a year.The change will push it to more than $1,000 a year for them.

The catch? To keep premiums that low for older folks, all those aged 81 to 85 will have to pick up a larger portion of their hospital bill.

Unlike younger people who need only pay the first $1,500 of their B2 bill, or $1,000 if they are in C class before insurance kicks in, those over 80 will will have to pay the first $3,000 in B2 or $2,000 in C class.

This means that almost all elderly patients will end up paying a larger portion of their hospital bills.

The changes in MediShield, which will affect 2.9 million policy-holders, is meant to help the small number of people who, in spite of government subsidy, still end up with bills of $10,000 or more.