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Home  > Government Accepts Recommendations Of MediShield Life Review Committee; Announces $4 Billion In Subsidies And Support For MediShield Life Premiums
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​​MO​H PRESS RELEASE

GOVERNMENT ACCEPTS RECOMMENDATIONS OF MEDISHIELD LIFE REVIEW COMMITTEE; ANNOUNCES $4 BILLION IN SUBSIDIES AND SUPPORT FOR MEDISHIELD LIFE PREMIUMS

1.The Government has accepted all the recommendations of the MediShield Life Review Committee on the design of the MediShield Life scheme. To ensure that all Singaporeans will benefit from ​this new insurance scheme, the Government will provide close to $4 billion in subsidies and other forms of financial support over the next five years.

2.The Government also welcomes the Committee’s recommendations on Integrated Shield Plans and other related issues, and will study how best to implement them.

MediShield Life Review Committee Recommendations

3.The Government thanks the Committee for its hard work and comprehensive review of the MediShield Life scheme over the past seven months. The Committee members have brought a wide range of expertise and perspectives to their work. The Committee has also consulted widely and received diverse inputs. Their final recommendations reflect the Committee’s considered assessment of the many good ideas and suggestions received.

4.The ​Government agrees with the Committee’s approach in calibrating a careful balance between providing more benefits and keeping premiums affordable, while ensuring that the system is sustainable over the long term. The Committee’s proposal for MediShield Life to provide stronger protection against large hospital bills, especially at Class B2/C level, will provide all Singaporeans with better peace of mind against large healthcare bills, for life.

Government to Provide Substantial Subsidies and Support

5. MediShield Life will provide better protection, for all and for life. With better benefits, premiums will need to increase, but will be able to be fully paid for from MediSave. The Ministry of Health will ensure that MediSave Withdrawal Limits can continue to fully cover MediShield Life premiums, and the additional 1%-point Employer’s MediSave contribution from 2015 will also be sufficient to cover the increases in MediShield Life premiums for most households.

6.To help Singaporeans with their MediShield Life premiums, the Government will commit close to $4 billion over the next five years in premium subsidies and other forms of support.

7.Government support will be in the following forms:

a.Government bearing the bulk of the cost of bringing those who have pre-existing conditions into MediShield Life. Government will pay for three-quarters of the cost in the first five years (about $850 million over five years). This will ease the shift to universal coverage under MediShield Life and keep the premium impact manageable for all;

b.Premium subsidies i.e. Pioneer Generation subsidies and subsidies for lower middle-income Singaporeans, and Additional Premium Support on a case-by-case basis for the needy (about $430 million per year). These will remain permanent features of MediShield Life; and

c.Transitional subsidies (for all Singapore Citizens) for the first four years (about $830 million over four years).

8.Premium subsidies for the Pioneer Ge​neration:​ Pioneers will enjoy special MediShield Life subsidies of between 40% and 60%. They also enjoy annual MediSave top-ups of up to $800 which can be used to pay for premiums.

9.Premium subsidies for lower- to middle-income: Up to two-thirds of all Singaporean households will be eligible for MediShield Life premium subsidies of up to 50%. The subsidy rates will be higher for those who are older, have lower income, or live in properties with lower annual value (AV). Households living in properties with AV of $13,000 or less can receive subsidies of between 15% - 50%.

a.A ​Singapore ​​Citizen living in lower-income household of four will receive up to 50% subsidy for his MediShield Life premium.

b.Permanent Residents receive half of the subsidy rates for Singapore Citizens in the same age and income/AV groups.

10.Additional Premium Support for the Needy: For the needy who are unable to pay for their net premiums after the various premium subsidies and MediSave top-ups, they can receive additional premium support from the Government, for up to full coverage of their premiums, similar to Medifund for healthcare bills. No Singaporean will lose MediShield Life coverage due to financial need.

11.Transitional Subsidies for Singapore Citizens: To ease the shift from MediShield to MediShield Life, the Government will also provide transitional subsidies for all Singapore Citizens for the first four years of MediShield Life. In the first year ​of MediShield Life starting end-2015, Government will subsidise 80% of the net increase in premiums (after taking into account premium subsidies), followed by 60%, 40% and 20% in the second, third and fourth year of MediShield Life respectively.

 

12.With the substantial Government subsidies and support, premiums will be more affordable for most Singaporean households:​

a.In the fi​rst year of MediShield Life, with the premium subsidies and first year transitional subsidies, the maximum premium increase will be less than ​$3 per month for the lower income, and no more than $6 per month across all ages and income groups;

b.In the fifth year of MediShield Life, after transitional subsidies have been phased out, the maximum premium increase compared with MediShield premiums today will be $30 per month for the high income. Singaporeans from lower-income households will continue to benefit from premium subsidies and premium increases from MediShield premiums today will be no more than $11 per month.

c.All Pioneers will pay less for MediShield Life premiums than today.

d.For all Pioneers aged 80 and above in 2014, they will have their premiums fully covered after the premium subsidies and MediSave top-ups

13.The detailed MediShield Life premiums and Government subsidies and support measures are shown in Annex A.

14.MediShield Life will be implemented in end-2015. MOH will provide more information on the implementation details at a later date.

Integrated Shield Plans

15.The Government also agrees with the Committee’s suggestion for Government to work with private insurers to review the landscape and features of Integrated Shield Plans (IPs), including developing key features for a standard IP with B1-levecoverage.​ 

16.Singaporeans who are currently on IPs will not be disadvantaged with the introduction of MediShield Life. Given that MediShield Life will be taking on a larger share of IP payouts, MOH will work with IP providers to take this into account when they set IP premiums. The overall increase for IP premiums resulting from the introduction of MediShield Life is expected to be the same, if not lower than the increase in MediShield Life premiums.​​​

​MediShield Life – Better Protection. For All. For Life.

17.The Government will table the Report of the MediShield Life Review Committee in Parliament as a White Paper, for debate at the next Parliamentary Sitting in July 2014.

18.The introduction of MediShield Life in 2015 will be a major step in our efforts to build a strong and sustainable social safety net. It will provide every Singaporean with lifetime basic protection against medical costs for greater peace of mind. Over the coming year, the Government will step up our efforts to reach out to Singaporeans to help them understand the value of MediShield Life and the many avenues to seek help. MediShield Life will be implemented in end-2015.

MINISTRY OF HEALTH

27 June 2014​​



A​NN​EX A​​ TABLE A-1: PRE​MIUM SUBSIDIES FOR LOWER- TO MIDDLE-INCOME (NON-PIONEER GENERATION)

Age Next

Birthday

S​ubsidies1as Percentage of

Premiums (for Singapore Citizens)

Lower income2​

 

Lower-

middle income3

 

Upper-

middle income4​

1 20

 

25%

 

20%

 

15%

21 30

31 40

41 50

 ​

30%

 

25%

 

20%

51 – 60

      61  65​​

 

 

35%

 

 

30%

 

 

25%

66 70

71 73

74 75

76 78

 

 

40%

 

 

35%

 

 

30%

79 80

81 83

84 85

86 88

 

45%

 

40%

 

35%

89 90

>90

50%

45%

40%

1 (a) These subsidy rates are applicable to Singapore Citizens living in properties with an Annual Value (AV) of $13,000 or less. Those living in properties with an AV of between $13,101 to $21,000 will receive 10 percentage points less than these subsidy rates. Those living  in  properties  with  an  AV  of  above  $21,000  will  not  receive  these  subsidies;   (b)  Permanent Residents receive half of the subsidy rates applicable to Singapore Citizens.
2 Lower-income refers to individuals with monthly per capita household income of $1,100 or less
3 Lower-middle-income refers to individuals with monthly per capita household income of $1,101 to $1,800
4 Upper-middle-income refers to individuals with monthly per capita household income of $1,801 to $2,600

 

 

 

TA​BLE A-2: CURRENT MEDISHIELD AND MEDISHIELD LIFE PREMIUMS (NON-PIONEER GENERATION) IN 20151

 

 

 

Age Next Birthday

Current Annual MediShield Premiums

($)

 

MediShield Life Annual Premiums Before Subsidy

($)

2015 MediShield Life premiums after subsidy2

 

 

Lower Income

Lower-Middle

Income

Upper-Middle

Income

 

High Income

 

Annual

($)

 

Monthly

($)

 

Annual

($)

 

Monthly

($)

 

Annual

($)

 

Monthly

($)

 

Annual

($)

 

Monthly

($)

1 20

          50

130

60

5

61

5

62

5

66

6

21 30

           66

195

82

7

84

7

86

7

92

8

31 40

105

310

131

11

134

11

137

11

146

12

41 50

         220​

435

237

20

241

20

246

20

263

22

51 60

345

630

364

30

371

31

377

31

402

34

61 65

455

755

462

39

470

39

477

40

515

43

66 70

540

815

530

44

546

46

554

46

595

50

71 73

560

885

563

47

572

48

581

48

625

52

74 75

646

975

634

53

653

54

663

55

712

59

76 78

775

1,130

678

57

735

61

778

65

846

71

79 80

865

1,175

705

59

764

64

823

69

927

77

81 83

1,123

1,250

750

63

813

68

875

73

1,148

96

84 85

1,150

1,430

858

72

930

77

1,001

83

1,206

101

86 88

1,190

1,500

825

69

900

75

975

81

1,252

104

89 90

1,190

1,500

825

69

900

75

975

81

1,252

104

>90

         -

1,530

765

64

842

70

918

77

1,258

105

 

1​ Premiums are based on the indicative schedule of benefits and may be further revised. The CPF Board will inform all policyholders of their payable MediShield Life premium (after any applicable subsidies) in writing, before premium deduction.
2​ (a) Subsidies include premium subsidies for lower- to middle-income families and transitional subsidies for all Singapore Citizens.  Premium subsidy rates in Table A-1 were used, and are applicable for those living in properties with an Annual Value (AV) of $13,000 or less. Those
living in properties with AV of between $13,101 to $21,000 will receive 10 percentage points less than these subsidy rates in Table A-1. Those living in properties with AV of above $21,000 will not receive these subsidies; (b) For Permanent Residents, half of the relevant premium subsidy rates apply, but no transitional subsidies.

​​
TABLE A-3: CURRENT MEDISHIELD AND MEDISHIELD LIFE PREMIUMS (NON-PIONEER GENERATION) IN 2019​1

 

 

 

Age Next Birthday

Current Annual MediShield Premiums

($)

MediShield Life Annual Premiums Before Subsidy in

2019 ($)

2019 MediShield Life premiums after subsidy2

 

Lower Income

Lower-Middle

Income

Upper-Middle

Income

 

High Income

 

Annual

($)

 

Monthly

($)

 

Annual

($)

 

Monthly

($)

 

Annual

($)

 

Monthly

($)

 

Annual

($)

 

Monthly

($)

1 20

          50

130

98

8

104

9

111

9

130

11

21 30

           66

195

146

12

156

13

166

14

195

16

31 40

105

310

233

19

248

21

264

22

310

26

41 50

220

435

305

25

326

27

348

29

435

36

51 60

345

630

441

37

473

39

504

42

630

53

61 65

455

755

491

41

529

44

566

47

755

63

66 70

540

815

530

44

571

48

611

51

815

68

71 73

560

885

575

48

620

52

664

55

885

74

74 75

646

975

634

53

683

57

731

61

975

81

76 78

775

1,130

678

57

735

61

791

66

1,130

94

79 80

865

1,175

705

59

764

64

823

69

1,175

98

81 83

1,123

1,250

750

63

813

68

875

73

1,250

104

84 85

1,150

1,430

858

72

930

77

1,001

83

1,430

119

86 88

1,190

1,500

825

69

900

75

975

81

1,500

125

89 90

1,190

1,500

825

69

900

75

975

81

1,500

125

>90

-

1,530

765

64

842

70

918

77

1,530

128

1 ​Premiums are based on the indicative schedule of benefits and may be further revised. The CPF Board will inform all policyholders of their payable MediShield Life premium (after any applicable subsidies) in writing, before premium deduction.
2 (a) Subsidies include premium subsidies for lower- to middle-income families for Singapore Citizens.  Premium subsidy rates in Table A-1
were used, and are applicable for those living in properties with an Annual Value (AV) of $13,000 or less. Those living in properties with AV of between $13,101 to $21,000 will receive 10 percentage points less than these subsidy rates in Table A-1. Those living in properties with AV of above $21,000 will not receive these subsidies; (b) For Permanent Residents, half of the relevant premium subsidy rates apply.

 

TABLE A-4: MEDISHIELD LIFE PREMIUMS FOR PIONEER GENERATION IN 2015 

Age of

Pioneers in

2014

Current

Payables

Annual

Premiums Before Subsidies

Pioneer

Generation MediShield Life Subsidies

Annual

Payables after

Subsidies

Annual

Payables after Subsidies and MediSave top- ups

65 to 79

$540-

$1,123

$815-

$1,250

40%-55%

$489-$566

About half of current premiums or less

($91-$291)

80 & above

$1,123-

$1,190

$1,250-

$1,530

55%-60%

$566-$615

Fully covered

($0)​

 

​​

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