MediShield Life Premiums Set to Rise in Singapore

SINGAPORE: The MediShield Life premiums are set to rise starting from April 2025 as the government takes steps to expand its national health insurance scheme. This decision follows a thorough review conducted by the MediShield Life Council, which has identified the need for increased claim limits. The aim is to better protect Singaporeans from hefty medical bills and to broaden coverage, allowing patients to access new types of care and treatments.

According to the council's report, which was released on October 15, the premium increases could reach as high as 35 percent. However, these increases will be implemented gradually over a three-year period, from April 2025 to March 2028. By the end of this period, the average premium per policyholder is expected to rise by approximately 22 percent. To help manage this transition, the council has proposed a one-time release of around S$600 million from the MediShield Life Fund. This measure aims to cap the total premium increase at 35 percent and ensure that the adjustments are phased in smoothly.

The adjustments to the MediShield Life scheme will introduce several new benefits. For instance, the existing outpatient claim limits will be refreshed, and the outpatient co-insurance will be lowered from a flat rate of 10 percent to a tiered structure ranging from 3 percent to 10 percent. Additionally, coverage will be expanded to include new outpatient treatments and home-based medical care, as well as high-cost treatments that are both clinically and cost-effective.

The council has explained that rising medical bills have significantly eroded the coverage provided by existing claim limits. Currently, these limits fully cover just under eight in ten subsidized bills, a decline from the original design of the scheme, which aimed to cover nine in ten subsidized bills. Consequently, more patients are finding themselves having to pay parts of their medical expenses out of pocket. The new claim limits are intended to restore the scheme to its original goal of fully covering nine in ten bills.

Moreover, as healthcare delivery increasingly shifts from hospitals to outpatient, community, and home settings, the council emphasizes the necessity of improving patient access to safe and affordable outpatient and home care. This shift reflects a broader trend in healthcare, where convenience and accessibility are becoming paramount.

While the increase in MediShield Life premiums may initially seem daunting, it is essential to recognize the underlying goal: to enhance the quality and accessibility of healthcare for all Singaporeans. By expanding coverage and adjusting claim limits, the government aims to ensure that individuals can receive the care they need without facing overwhelming financial burdens. As we move forward, it is crucial for citizens to stay informed about these changes and understand how they can benefit from the enhanced healthcare system.