Transitional Subsidies for MediShield Life Premiums to Increase in First Two Years of MediShield Life

1. To further ease the transition to MediShield Life, the Government will increase the Transitional Subsidies it will provide to Singapore Citizens (SCs) for the first two years of the scheme.

2. In the first year, all SCs who face an increase in their net premiums (i.e. after taking into account various subsidies, including Premium Subsidies and Pioneer Generation Subsidies) for MediShield Life will be subsidised 90% of the net increase in premium, followed by 70% in the second year. This is higher than the earlier announced rate of 80% and 60% for the first two years respectively.

3. The Transitional Subsidy rate for the third and fourth years of the scheme will remain at 40% and 20% respectively.
   

4. MediShield Life will provide enhanced coverage for all Singaporeans for life. The increase in Transitional Subsidies will further ease the transition for SCs by reducing the increase in premiums they will face in the first two years:  

   • In the first year of MediShield Life, SCs will pay only 10% of the net premium increase. The maximum premium increase for SCs who are fully insured under MediShield today will be less than $3 per month across all ages and income groups; 

   • In the fifth year of MediShield Life, after Transitional Subsidies have been phased out, lower-to-middle income households (up to two-thirds of all households) will still continue to benefit from Premium Subsidies.

MINISTRY OF HEALTH
29 January 2015