S$700 million will go to enhancing means-tested premium subsidies over three years, while S$3.4 billion will be given to additional MediSave top-ups. - ST PHOTO: KUA CHEE SIONG
SINGAPORE (The Straits Times/ANN): A package of S$4.1 billion (RM13.17 billion) in support measures will be provided to Singaporeans to cushion the increases in premiums for MediShield Life, planned to go into effect progressively from April 2025.
Of that, S$700 million will go to enhancing premium subsidies over three years, while S$3.4 billion will be given to additional MediSave top-ups, the Ministry of Health (MOH) announced on Oct 15.
Premiums will go up by an average of 22 per cent by March 2028.
Lower- and middle-income Singaporeans in older age groups will see their premium subsidies increased by 5 to 10 percentage points.
Individuals in these groups will be eligible for premium subsidies of up to 60 per cent from April 1, 2025, up from 50 per cent currently.
The annual MediSave top-ups for Pioneer Generation seniors, aged 75 and older, will be increased by up to S$300, bringing the maximum annual top-up to S$1,200.
Under the Pioneer Generation Package, those above 90 in 2025 will continue to have their MediShield Life premiums fully covered by these annual top-ups and existing subsidies, while those under 90 will still see about two-thirds of their premiums covered, said MOH.
Meanwhile, the one-time MediSave bonus under the Majulah Package – to be paid out in December for those born in 1973 or earlier – will be increased to S$2,000, a S$500 enhancement.
An additional MediSave bonus of S$500 will be paid out in 2025 to people born between 1950 and 1973, to help cover the increase in premiums for those with low MediSave balances.
People born between 1974 and 2003, who are due to receive a one-time MediSave bonus of up to S$300 in December, will see that amount increase to $500.
The MediSave grant for newborns of Singapore citizens will also increase from S$4,000 to S$5,000, fully covering their MediShield Life premiums until the age of 21.
Additional Premium Support – aimed at those who are unable to afford their MediShield Life premiums after subsidies, and have limited family support – will be enhanced by S$80 million, with the eligibility criteria for such support expanded to cover more lower-income Singaporeans.
Assistant Professor Cynthia Chen of the NUS Saw Swee Hock School of Public Health said such support measures are needed, as premiums rise with age.
The financial burden is especially challenging for lower- and middle-income groups, who typically have less accumulated MediSave savings and may find it difficult to keep up with rising healthcare costs, said Prof Chen, whose research areas include the economics of ageing and healthcare financing.
“Ensuring equitable access to healthcare, regardless of income level, is crucial to preventing financial hardship and protecting vulnerable populations from being disproportionately affected by rising premiums,” she said.
In addition, the Government will release about S$600 million from the MediShield Life Fund to allow the premium increases to be capped and phased in, based on a recommendation from the MediShield Life Council.
Health Minister Ong Ye Kung noted this one-time release of capital was made possible by a change to the fund’s risk model.
From the third quarter of 2025, as part of a three-year trial, policyholders aged 40 and above can redeem MediShield Life premium discounts via the Health Promotion Board’s Healthy 365 app at a rate of S$2 for 150 Healthpoints, double the regular rate.
This means someone who does about 30 minutes of moderate to vigorous physical activity per day for a year could enjoy an $80 discount off his or her MediShield Life premiums, MOH noted.
Healthpoints are awarded for participating in healthy lifestyle programmes or completing the first health plan consultation after enrolling with a Healthier SG clinic.
From October 2025, MediShield Life and MediSave coverage will also be extended to cover cell, tissue and gene therapy products on MOH’s list of such products, with claim limits to fully cover two in three subsidised patients initially, as part of a pilot financing framework.
To manage healthcare spending in the longer term, beyond measures such as MediShield Life, Ong said the authorities hope to encourage people to stay as healthy as possible through initiatives such as Healthier SG, the national preventive health scheme. - The Straits Times/ANN
