Government Responds to MediShield Life Review Committee’s Preliminary Recommendations (1 Mar 2014)

The Ministry of Health (MOH) welcomes the preliminary recommendations of the MediShield Life Review Committee (MLRC). The MLRC has held 23 focus group discussions with various groups so far, consulting close to 800 people. MOH thanks them for their extensive efforts to gather feedback and their detailed studies of the parameters. 

2              The MLRC has made the following preliminary recommendations for the MediShield Life benefit parameters, as well as the approach towards bringing in the currently uninsured:

(a)          To remove the lifetime claim limit;

(b)          To increase claim limits for normal wards and ICU wards by about 50%;

(c)           To halve co-insurance rates; and

(d)          For Government to take on most of the costs of universal coverage, with the remaining costs to be shared among the currently uninsured unhealthy and the larger pool of existing insured policyholders. 

3              MOH is supportive of the MLRC’s recommendation to lower co-insurance rates in order to reduce co-payment from members after deductible. This will help to keep healthcare costs affordable for Singaporeans.

4              The Committee’s proposals to raise claim limits and to remove lifetime limits are also in line with the Government’s emphasis on providing lifetime coverage to all Singaporeans and to help them better manage large hospital bills.

5              These proposed recommendations will involve greater payouts, which in turn require higher premiums. The Government, however, has stated its commitment to help the middle- and lower-income with their MediShield premiums. In addition, as announced by DPM Tharman in his Budget Speech 2014, for the Pioneer Generation seniors, MediShield Life premium subsidies will start from 40 per cent at age 65, rising to 60 per cent at age 90.  The Government has stated its intent of helping PG who are currently aged 80 and above to fully pay their premiums through a combination of premium subsidies and Medisave top-ups.  For younger PG, if they are on Medishield, the aim is for them to co-pay about half of their current MediShield Life premiums, with the rest covered through premium subsidies and Medisave top-ups.

6              MOH will study the MLRC’s preliminary recommendations carefully and looks forward to more views from the Committee, as they continue with their review and gather public feedback.  MOH will also provide premium pricing advice and support to the Committee, based on their recommendations.

MINISTRY OF HEALTH

1 March 2014