MediShield Life has started on 1 November 2015. This means all Singapore Citizens and Permanent Residents – including the very old and those with pre-existing conditions – are now covered for life with better protection against large hospital bills. With better benefits, MediShield Life premiums will have to increase, but they will be affordable.
The Government will provide different types of subsidies to ensure premiums remain affordable – no one will lose their MediShield Life coverage just because they are unable to pay for their premiums.
The subsidies include Transitional Subsidies for all Singapore Citizens who experience an increase in MediShield Life premiums compared to MediShield. There will be Premium Subsidies for the lower- to middle-income (permanent feature), and Pioneer Generation Subsidies for life. There will be Additional Premium Support for those who are unable to pay for their premiums even after subsidies. Your Medisave monies may be used to pay for your MediShield Life premiums. Read about these premium subsidies in more detail.
How do premium subsidies help make MediShield Life affordable for everyone?
Mr and Mrs Koh are in their late 30s and have two children who are in primary school. Mr Koh earns $4,000 a month, while Mrs Koh is a homemaker. Their household monthly income per person ($4,000 divided by 4) is less than $1,100. They will receive subsidies that are available for lower-income households. Based on his income, Mr Koh saves $4,320 in his Medisave Account each year. Under the current MediShield scheme, the Koh household pays $310 a year in premiums. Under MediShield Life, their premiums will work up to:
The Koh family’s premiums can be fully paid with the Medisave contributions Mr Koh receives from working.
Mr and Mrs Azli, who are in their late 40s, earn a total of $8,000 a month. They have three children of school-going age. Each year, their combined Medisave contributions come up to $9,600. Their household monthly income per person ($8,000 divided by 5) is between $1,100 and $1,800. Thus, they qualify for subsidies available for a lower-middle income household. Under the current MediShield scheme, they pay $590 a year in premiums. Under MediShield Life, the family’s premiums will work up to:
Their combined Medisave contributions are more than enough to cover the family’s MediShield Life premiums.