Most people will not feel the brunt of higher MediShield Life premiums: Health minister

SINGAPORE - While MediShield Life premiums will go up following a review of the scheme, most people will not feel the brunt of the increase due to support measures to cushion the blow, said Health Minister Ong Ye Kung on Oct 18.

“When premiums go up, we subsidise more, we top up MediSave more,” he said in an interview on The Big Show on SPH Radio station Kiss92.

The Ministry of Health (MOH) announced on Oct 15 that starting in April 2025, premiums for MediShield Life will go up.

By March 2028, the premiums will increase by an average of 22 per cent. 

This change is part of an expansion of the national insurance scheme, allowing people to claim more for hospital stays and providing coverage for additional outpatient treatments and selected new ground-breaking therapies.

MOH said more than nine in 10 people here will receive help to more than offset the increases, with $4.1 billion going towards support measures.

For example, from April 2025, lower-income and middle-income Singaporeans in older age groups will receive premium subsidies of up to 60 per cent, up from 50 per cent currently, while the MediSave grant for newborns will increase from $4,000 to $5,000.

Speaking to radio hosts Angelique Teo, Glenn Ong and The Flying Dutchman, Mr Ong noted that one reason for the expansion of MediShield Life is the increasing claim amounts.

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According to MOH, MediShield Life payouts increased by 9.8 per cent annually between 2020 and 2023, while the payout per claim went up by 3.4 per cent during that time.

Mr Ong emphasised that increasing claim limits is a pre-emptive step to better safeguard Singaporeans against having to pay large medical bills out of pocket.

For example, under the latest revision, daily claim limits for intensive care unit ward stays will go up from $2,200 to $5,140, he noted.

Asked whether individuals could receive discounts on their premiums for remaining healthy and not making claims from MediShield Life, Mr Ong said this was something the authorities would have to “think very hard about”.

One mechanism to reduce premiums for those who lead healthy lifestyles is to use the Health Promotion Board’s Healthy 365 app, he said.

Mr Ong noted that as part of a three-year trial, policyholders aged 40 and above can redeem MediShield Life premium discounts by earning Healthpoints via the app. These points are awarded for participating in healthy lifestyle programmes or completing the first health plan consultation under Healthier SG.

For example, someone who exercises for an average of 30 minutes daily for a year could redeem $80 worth of discounts on his MediShield Life premiums.

While the authorities will examine data from the trial to see if it can be made permanent, Mr Ong cautioned that it is important not to disadvantage those with medical conditions who may be unable to exercise regularly and therefore cannot claim such discounts.

“The whole point of insurance, especially national insurance like MediShield Life, is to be inclusive,” he said.

During the show, Mr Ong shared details about his exercise routine, noting that he alternates between swimming, cycling, lifting weights and practising pilates, having largely recovered from a partial knee replacement in March 2023.

He said lifespans of 100 years are within reach, with infants today having a good chance of becoming centenarians.

In 2016, a report by Pew Research Centre projected that there could be as many as 3.7 million centenarians worldwide by 2050.

Mr Ong noted, however, that while Singaporeans today have an average life expectancy of about 84 years, the last 10 years of life are not spent in good health.

Beyond just extending lifespan, MOH is interested in extending “health span”, or years spent in good health, he said.

“So our objective is to squeeze that 10 years (of poor health).”

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This article was first published in The Straits Times. Permission required for reproduction.