Press Releases
Premiums and claims under MediShield Basic
21 November 2011
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21 November 2011
Question No. 27
Name of person: Mr Gerald Giam
Question
To ask the Minister for Health (a) what was the total MediShield Basic premium paid each year in the past 10 years; (b) what was the total amount in claims paid out for MediShield Basic in each of those years; and (c) what was the number of patients with approved claims in each of those years.
Answer
1. Between 2001 and 2010, the amount of claims paid out by MediShield increased by 4.4 times, while the amount of premiums collected increased by 4 times. During the decade, various enhancements were made to MediShield to benefit Singaporeans, and premiums were increased in tandem to support the enhancements.
2. The following table shows the premiums collected, claims paid and required changes to reserves1 to fund future MediShield liabilities for the period from 2001 to 2010.
Table 1: MediShield Premiums and Claims (2001 to 2010)
Table caption
Year | Premium Collected | Claims Paid | Required Change in Reserves to fund Expected Scheme Liabilities | No. of claims |
|---|---|---|---|---|
2001 | $95.5m | $58.5m | N.A. | 91,000 |
2002 | $98.3m | $76.6m | N.A. | 107,000 |
2003 | $98.7M | $76.8m | N.A. | 106,000 |
2004 | $100.0m | $83.8m | N.A. | 115,000 |
2005 | $185.9m | $87.7m | $274.4m | 114,000 |
2006 | $229.8m | $112.8m | $122.2m | 136,000 |
2007 | $238.9m | $137.4m | $209.8m | 159,000 |
2008 | $302.9m | $160.7m | $30.4m | 177,000 |
2009 | $372.1m | $214.6m | -$11.7m | 207,000 |
2010 | $385.6m | $248.6m | $152.6m | 236,000 |
2005 to 2010 | $1,715m | $962m | $778m | 1,029,000 |
Source: CPFB Annual Reports.
Figures from 2001 to 2005 include the former MediShield Plus plans. Changes in reserves are omitted for 2001 to 2004 as there was a change in valuation methodology to MAS’s Risk-Based Capital Framework in 2005 and prior figures would not offer a like-for-like comparison.
3. MediShield operates on a not-for-profit basis and premiums are actuarially calculated to cover all liabilities for current and future years. Besides funding current claims, a portion of MediShield premiums is set aside as reserves in line with the Monetary Authority of Singapore (MAS)’s Risk-based Capital framework.
4. Beyond the reserves, MediShield is also required to set aside a certain sum of capital, to meet MAS’s risk requirements and keep the Fund solvent in case of adverse risks.
5. The Ministry will continually improve MediShield over time to help Singaporeans meet their healthcare needs. Premiums will be kept affordable and yet ensure the fund remains solvent.
Footnotes
1 The insurance contract liabilities are determined based on the advice of the CPF Board’s independent actuarial advisers, and in line with insurer practice in Singapore.