MediShield Life premiums may increase under proposed changes
Under new proposed changes announced by the Ministry of Health (MOH), premiums for MediShield Life in Singapore may increase in the next few years, along with other changes in the benefits received. Whether or not you’re familiar with MediShield Life, this Pacific Prime Singapore article tells you everything you need to know about the proposed changes.
What is MediShield Life?
If you’re not already familiar with the Singaporean healthcare system, it’s important to understand the different healthcare schemes and subsidies in the city-state, including what MediShield Life is, before we delve into the proposed changes by the MediShield Life Council as part of the MOH.
Put simply, MediShield Life is a basic health insurance plan for all Singaporean citizens and permanent residents, regardless of age or health condition. It’s a compulsory health insurance in Singapore, as those eligible are automatically enrolled. It protects them against large hospital bills and select outpatient treatments for life, such as dialysis and chemotherapy.
MediShield Life benefits
How much of your bill is covered will depend on the ward class you choose, as well as the hospital type you opt for. MediShield Life payouts are pegged at B2/C-type wards in public hospitals, so going here will enable you to get a certain portion of your bill covered, which will be the most you can get.
Options if you prefer an A/B1-type ward or a private hospital:
If you go for an A/B1-type ward or to a private hospital, the MediShield Life payout will cover a smaller proportion of the bill. In this case, you have to pay cash or top up the rest from your MediSave account, a national medical saving scheme. Alternatively, it’s also possible to sign up for an Integrated Shield Plan, which is managed by a private insurance company.
MediShield Life premiums:
MediShield Life premiums can be paid for by your MediSave account. There are various subsidies and supports to keep premiums affordable, based on household income tiers and age. This premium calculator tool enables you to calculate your estimated premium, after any applicable premium subsidies.
What are the proposed changes to MediShield Life?
Since the launch of MediShield Life in 2015, this is the first major review that has taken place. It should also be noted that premiums have been stable so far, despite payouts rising by close to 40% in the last four years and the number of claimants increasing by almost 30%. Moreover, the premiums were also not hiked when enhancements were introduced from 2018 to 2020.
Given this, the MediShield Life Council has made preliminary recommendations to increase the premiums, as well as the benefits offered. The public consultation will be held from September 29th to October 20th, after which authorities expect to implement the changes in early 2021. Here are the proposed changes:
1. Premiums
Premiums may increase by up to 35% (before subsidies) in the next few years, with those aged 61 and above seeing the highest increase. The net increase will be kept at about 10% in the first year, after considering existing and new subsidies, including the one-off COVID-19 subsidy. This will cover 70% of net increase in premiums in the first year and 30% in the second year.
According to the MOH, premium increases may be as follows:
| Age at next birthday | Increase (%) |
| 1 – 20 | 11.5 |
| 21 – 30 | 28.2 |
| 31 – 40 | 25.8 |
| 41 – 50 | 20.7 |
| 51 – 60 | 27 |
| 61 – 65 | 35.1 |
| 66 – 70 | 35 |
| 71 – 73 | 35 |
| 74 – 75 | 35.4 |
| 76 – 78 | 35.4 |
| 79 – 80 | 35.3 |
| 81 – 83 | 34 |
| 84 – 85 | 35.3 |
| 86 – 90 | 35 |
| > 90 | 34.3 |
2. Policy year claim limit
The policy year claim limit may go up. Currently, the claim limit is set at SGD $100,000 annually. The proposed change would raise it to SGD $150,000. This will enable users to get better protection against enormous hospital bills, which arise from long or multiple hospital stays throughout the entire year.
3. Other claim limits, deductibles, and pro-ration factor for private hospitals
Claim limits for sub acute-care and daily ward may rise to improve coverage for costlier treatments and stays. There may also be a lower deductible for day surgery for older patients, so they aren’t discouraged from it. Finally, the pro-ration factor for private hospitals will be decreased so there are similar payouts between patients in the public and private sector.
4. Standard exclusions
There may also be a removal of standard exclusions. This will mean that treatment is extended for attempted suicide, intentional self-injury, drug addiction, as well as alcoholism. As a result of these changes, it’s estimated that more patients will be eligible to receive the help that they require.
Note: Details of the proposed changes:
This visualization by Straits Times outlines all the proposed changes in more detail to the MediShield Life claim limits, deductibles, and pro-ration factors.
Get in touch with Pacific Prime to learn about healthcare and health insurance in Singapore
As a Singaporean citizen and permanent resident, MediShield Life plans are a good safety net to have. With that said, more comprehensive coverage is available either as an Integrated Shield plan or an international health insurance plan. It’s important to understand your health insurance options, including the costs of health insurance in Singapore and how to choose a plan.
International health insurance, often referred to as global health insurance or expat health insurance, is the obvious choice for expats in Singapore. This is because it’s far more compatible with the expat way of life, allowing policyholders to get worldwide coverage, as well as relocate to another country without getting a new health insurance plan.
However, even for local Singaporeans, an international health insurance plan may be something to consider if you want the best possible coverage available. As a global health insurance broker, with over two decades of experience, Pacific Prime Singapore can help you compare health insurance, enabling you to select a plan most suitable with your needs and budgets.
Contact us today!
With over 5 years of experience in the field, Suphanida spends the majority of her day synthesizing complex pieces of insurance-related information and translating this into easy-to-understand, engaging, and effective content across a variety of media such as articles, infographics, whitepapers, videos, and more.
Suphanida is also responsible for planning and publishing three whitepapers released annually by Pacific Prime: The State of Health Insurance Report, The Cost of Health Insurance Report, and The Global Employee Benefits Trends Report. Additionally, she handles the LinkedIn profiles of Pacific Prime’s Founder and CEO, as well as Global HR Lead.
Suphanida’s strengths lie in her strong research and analytical skills, which she has gained from her BA in Politics from the University of Warwick and Erasmus Mundus Joint MA in Journalism from Aarhus University and City, University of London.
Being of Thai-Indian origin and having lived, studied, and worked in Thailand, the UK, and Denmark, Suphanida also has a unique, multicultural perspective that helps her understand the struggles of expats and globetrotters.
Outside of work, she enjoys traveling to new places and immersing herself in different cultures.
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