Medisave can be used for healthcare expenses not covered by insurance

12 Sep 2011, The Straits Times

Allow Medisave exemption on certain grounds

I am self-employed and have been faithfully making my Medisave contributions, including voluntary CPF contributions, for the last 10 years or so.

I now have a substantial amount in my Medisave account. I also have a Central Provident Fund-approved integrated plan with Aviva, including its riders that will cover fully my hospitalisation and operations on an 'as charged' basis, up to private-ward class.

Recently, I have been notified to top up my Medisave again and I called the CPF Board to seek exemption for this.

The intent of Medisave is to ensure that CPF holders have sufficient monies available for medical treatment when they fall sick. As I have a comprehensive medical plan in place for myself and my family, I do not see the need to contribute to Medisave, the monies of which can be withdrawn from my estate only when I die.

However, my request was denied on the basis that Medisave contribution is compulsory.

Given that new integrated medical plans have been introduced over the past few years, it's time the CPF Board reviews its policy. Policyholders who have a comprehensive medical plan should be able to seek exemption from Medisave contributions upon producing evidence of their policy.

Furthermore, all Shield plan premiums are currently payable via Medisave.

Jessica Ho (Ms)

Reply From MOH

In “Allow Medisave exemption on certain ground” (28 August, 2011), Ms Jessica Ho asked if Singaporeans who already have a comprehensive medical insurance plan could be exempted from further Medisave contributions.

Medisave is a national medical savings scheme that enables Singaporeans to pay for their share of medical treatment. It helps to ensure that all Singaporeans build up a healthy reserve that can be used for the co-payment of their healthcare bills, including that of immediate family members, where necessary.  All employees, as well as self-employed persons earning more than $6,000 a year, are required to contribute to Medisave.

Ms Ho indicated that she had a private integrated shield plan, along with a rider that covers the co-payment.  We note that such plans may not cover expenses outside hospital admissions, such as outpatient treatments of chronic diseases and community-based care such as day rehabilitation treatment.  Medisave can be used to pay for the costs of such treatments that are not covered by insurance.  Ms Ho is also correct to point out that Medisave can also be used to pay for the annual premiums of MediShield and Integrated Shield Plans. In addition, Medisave can be used to pay for ElderShield premiums, which protects against severe disability, something which is not covered by MediShield or Integrated Shield plans.  While those who opt for higher insurance cover (e.g. Integrated Shield Plans) can expect more comprehensive cover, they still benefit from Medisave contributions which can be used to pay for the higher premiums for such plans.

With the increase in life expectancy, coupled with the rise in the incidence of chronic diseases, Singaporeans will need to ensure that they have adequate savings for their lifetime healthcare needs, including after retirement.  Singaporeans who contribute regularly to Medisave will be able to benefit from this store of savings to pay for their medical costs and insurance premiums, and enjoy greater peace of mind as they age.

Bey Mui Leng (Ms)
Director, Corporate Communications
Ministry of Health