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21 October 2013
Question No. 656
Name of Person: Ms Mary Liew
Question
To ask the Minister for Health what is the amount of MediShield premiums collected and MediShield claims paid out in the last five fiscal years.
Answer
1 Between 2008 and 2012, the amount of claims paid out by MediShield annually doubled, while the amount of premiums collected increased by about 40%. The claims paid out by MediShield are expected to further increase as the population ages and with the expansion of coverage to psychiatric, congenital and neonatal conditions from March 2013.
2 The following table shows the premiums collected, claims paid and required changes to reserves[1] to fund future MediShield liabilities for the period from 2008 to 2012.
Table 1: MediShield Premiums and Claims (2008 to 2012)
Table caption
Premiums Collected | Claims Paid | Required Change in Reserves to Fund Expected Scheme Liabilities | |
|---|---|---|---|
2008 | $302.9m | $160.7m | $30.4m |
2009 | $372.1m | $214.6m | -$11.7m |
2010 | $385.6m | $248.6m | $152.6m |
2011 | $404.7m | $282.4m | $201.2m |
2012 | $421.3m | $315.1m | $154.0m |
Source: CPFB Annual Financial Reports.
3 As a not-for-profit and self-sustaining insurance scheme, MediShield premiums are actuarially calculated to cover all expected liabilities for current and future years, which includes policyholders’ claims and premium rebates to help policyholders with old-age premium affordability. A portion of the premiums collected is also set aside as reserves and capital in line with the Money Authority of Singapore (MAS)’s Risk-Based Capital framework and risk requirements to keep the Fund solvent in case of adverse risks.
[1] The insurance contract liabilities are determined based on the advice of the CPF Board’s independent actuarial advisers, and in line with insurers’ practice in Singapore.