MediShield Life premiums to increase as government expands national health insurance scheme

SINGAPORE: MediShield Life premiums will increase from April 2025 as the government expands the national health insurance scheme.
This comes after a review of the insurance scheme by the MediShield Life Council. It called for increased claim limits to better protect Singaporeans against large medical bills and expanded coverage to help patients afford new types of care and treatments.
With higher claims and expansion of coverage, premiums may increase by as much as 35 per cent. The increases will be phased evenly over three years from April next year to March 2028.
With this, premiums will increase by an average of 22 per cent per policyholder by the end of the third year, read the council’s report, which was published on Tuesday (Oct 15).
To fund this, the council recommended a one-off release of around S$600 million from the MediShield Life Fund so as to cap the total premium increase at 35 per cent and phase it evenly. 
The higher premiums will support the changes to the MediShield Life scheme. Here are some of the new benefits: 
3. Increase inpatient deductible by up to S$1,500. 
4. Refresh existing outpatient claim limits and lower outpatient co-insurance from a flat 10 per cent to a tiered structure ranging from 3 per cent to 10 per cent. 
5. Expand coverage to include new outpatient treatments and home-based medical care.
6. Introduce a new outpatient deductible of S$500 per year. 
7. Expand coverage to new high-cost treatments that are both clinically and cost-effective 
Explaining the changes, the council said rising medical bills have eroded the coverage of existing claim limits, which now fully cover just under eight in 10 subsidised bills. 
This is lower than the nine in 10 subsidised bills that the scheme was designed to fully cover. 
As a result, more patients with large bills have to pay for parts of these in cash, the report said. 
The new claim limits should bring the scheme back to its original mandate of fully subsidising nine in 10 bills. 
In addition, with the centre of gravity for healthcare delivery shifting from hospitals to outpatient, community and home settings, the council said there is a need to improve patient access to safe and affordable outpatient and home care.
In a press release on Tuesday, MOH said the government has accepted the council’s recommendations, adding that it will enhance the scheme to better protect Singaporeans against major health episodes that result in large medical bills. 
MOH said the government will adjust MediSave withdrawal limits so that patients can use MediSave to cover the co-insurance and the revised deductibles. 
The revised MediShield Life benefits and MediSave limits will be implemented progressively from April next year, together with the first phase of the increase in inpatient deductible.
The outpatient deductible will be introduced on Jan 1, 2026, followed by the second phase of the increase in inpatient deductible on Apr 1, 2027. All other changes will be made progressively from Apr 1 next year. 
To cushion the impact of higher premiums on Singaporeans, the government will provide an additional S$4.1 billion in support measures over the next three years. 
This package comprises S$3.4 billion in MediSave top-ups and S$0.7 billion in premium subsidies.
As part of this, premium subsidies will be increased by five to 10 percentage points for lower-income and middle-income Singaporeans in older age groups. From Apr 1, 2025, they will be able to receive premium subsidies of up to 60 per cent, an increase from the current cap of 50 per cent.
Annual MediSave top-ups for the Pioneer Generation will also be increased by up to S$300, bringing the maximum annual top-up to S$1,200. 
For Singaporeans born in 1973 or earlier, a one-time Majulah package MediSave bonus of up to S$1,500 – first announced in August last year – will be increased by S$500. This will be paid in December. 
Meanwhile, an additional MediSave bonus of S$500 will be given in 2025 to some seniors born between 1950 and 1973 who may not have been able to accumulate enough savings in their MediSave account to help cover the rise in premiums. 
For newborns, the MediSave grant will be increased from S$4,000 to S$5,000 from Apr 1, 2025.
Finally, for Singaporeans born between 1974 and 2003, a one-time MediSave bonus of up to S$300 – announced in this year’s Budget – will be increased by S$200. This will be paid in December. 
According to MOH, for more than nine in 10 Singaporeans, the additional MediSave top-ups, subsidies and support will “more than offset” the cumulative S$1.8 billion in additional premiums over the next three years.
In support of Healthier SG, policyholders aged 40 and above may redeem MediShield Life premium discounts via the Health Promotion Board’s (HPB) Healthy 365 app. 
The conversion rate will be 150 Healthpoints to S$2, up from the regular rate of S$1. The programme will commence in the third quarter of next year and will run as a pilot for three years. 
MOH said the government will review the outcomes of the pilot before deciding whether to make it a permanent feature of MediShield Life.
From October next year, the government will also extend MediShield Life and MediSave coverage to cell, tissue and gene therapy products (CTGTPs) that are on MOH’s list. 
Given the high costs of CTGTPs, MOH said the Medishield Life and MediSave limits will be sized to fully cover two in three subsidised patients initially.