Medisave limits fully cover basic MediShield premiums

Straits Times, 11th July 2013

Increase Medisave cap

My friends and I recently received letters from NTUC Income requesting that we pay a certain amount in cash to cover the increase in premiums for our IncomeShield policies.

In the past, the premiums were covered by Medisave. I was told that the cash payment was required because of a cap on the amount of Medisave that can be used for paying the premium, which was raised to increase the policy benefits.

My friends and I have no quarrel over the rise in premiums, but why is there no corresponding increase in the cap for use of Medisave to cover it?

Goh Khee Kuan

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Reply from MOH - Straits Times, 15th July 2013

Medisave limits fully cover basic MediShield premiums

Mr Goh Khee Kuan asked why the Medisave withdrawal limit could not cover the premium increase for his private Integrated Shield plan ("Increase Medisave cap"; last Thursday).

Medisave is designed to support basic health-care expenses.

Hence, Medisave withdrawal limits are designed to help Singaporeans pay for basic MediShield coverage, which will help with large subsidised Class C/B2 hospital bills.

The Ministry of Health had recently increased Medisave withdrawal limits for those aged 76 to 80, and those aged above 80, to $1,000 and $1,200 respectively to ensure they fully cover basic MediShield premiums.

Medisave can also be used to defray some of the cost of additional coverage under private Integrated Shield plans.

However, as private Shield plans target coverage for higher ward classes, they are more expensive and may require some cash outlay.

Those who choose to buy private Shield plans should consider if these more expensive plans are appropriate for their needs.

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