The Government welcomes the latest update by the MediShield Life Review Committee (MLRC) on MediShield Life benefit features, and thanks the MLRC for their efforts in reviewing the scheme. The Ministry of Health (MOH) is supportive of the MLRC’s proposals to raise claim limits and lower co-insurance, especially for the largest bills. These enhancements will provide all Singaporeans with peace of mind against large healthcare bills for life.
2. With the enhanced MediShield Life benefits, payouts will increase, which in turn require higher premiums. The Government will ensure that Medisave withdrawal limits will be sufficient for all MediShield Life premiums.
3. To help Singaporeans with their MediShield Life premiums, the Government will provide premium subsidies, financial assistance and other forms of funding support for the lower to middle income, as a permanent feature of MediShield Life. The premium subsidies for Pioneers are not means-tested and will be for life.
4. The Government will help all Singaporeans to adjust to the premium increases over four years through transitional subsidies.
Government Subsidies and Support
5. The Government accepts the Committee’s recommendation and will bear most of the cost of bringing in those with pre-existing conditions. In this way, the Government will help all Singaporeans, including those with pre-existing conditions and those who are currently excluded, achieve MediShield Life cover, while ensuring that premiums are kept affordable premiums for policyholders.
6. To help Singaporeans, especially the lower and middle income groups and the elderly, the Government will put in place a range of additional support measures. These Government support measures are:
a. Premium subsidies for lower to middle income households, i.e. up to two-thirds of the population. There will be further financial assistance for those who need help, even after premium subsidies;
b. Transitional subsidies for four years for all Singapore Citizens, regardless of income, to ease in the shift to MediShield Life; and
c. Support for the Pioneer Generation, for life.
MediShield Life – Better Protection, For Life, For All
7. With MediShield Life, all Singaporeans will be better protected against large healthcare bills for life, regardless of changes in their life and health circumstances. To help Singaporeans benefit fully from this important shift, the Government is doing its part by committing financial support through various schemes.
8. MOH will finalise the Government subsidies, and provide the details at a later date. The Government will consider the recommendations of the MLRC, after the Committee submits its final report, and announce its findings thereafter. MediShield Life will be implemented in end-2015.
MINISTRY OF HEALTH
5 June 2014