MediShield coverage and premiums pushed for increase

New proposals want to raise claims caps to $70,000 per year and $300,000 per lifetime, and increase premiums by around $10 monthly.

Aside from the raised claims caps, MediShield coverage wil now extend up to 90-year-olds. It will also start to include short-stay wards in Emergency Departments and inpatient psychiatric treatment, according to the Ministry of Health (MoH).

Accordingly, MediShield premiums will be raised to fund the extended coverage and payouts. MoH estimates that for the vast majority of policy-holders, the increase in premiums will be less than $10 per month. At the same time, there will be a moderate increase in Class C/B2 deductibles to maintain the scheme’s focus on large bills and ensure affordability of premiums.

"For Singaporeans aged 65 and below, the impact of the premium increase will be no more than $5 per month in the next two years due to additional government support given as part of Budget 2012. For the elderly, their premiums will be largely offset by the annual and one-time Medisave top-ups, and they will even see a decrease in premiums payable. Overall, the Government will ensure that MediShield premiums will continue to remain affordable even for the lower-income," said MoH.

The government health body noted that the last round of adjustments to MediShield was made in 2008. Since then, MediShield claims have increased, both in terms of the number of claims and the average payout per policy holder. The number of claims per policy holder has increased by 9% per year while the average payout per policy holder has risen by about 12% per year. These are mainly due to our larger and ageing population, greater awareness and use of medical services, higher costs associated with new and improved medical technology and treatments, and general medical inflation of about 3% per annum.

MOH is also considering extending MediShield coverage to include congenital and neonatal conditions to help support disadvantaged groups in our society. With this, all future Singaporean babies will be covered throughout their lifetime, from birth, so long as they do not opt out. "This will give those intending to start families a greater peace of mind," said MoH.

Public consultations for the proposed MediShield enhancements are slated from 18 July to 15 August. It will also seek public feedback on the possible inclusion of congenital and neo-natal conditions in MediShield coverage.