No Singaporean will be denied MediShield Life coverage, even if they cannot afford to pay their premiums.

This was emphasised by Minister of State for Health Koh Poh Koon on Monday (Nov. 2), who said that there are financial support schemes available to ensure that premiums remain affordable.

Premiums are heavily subsidised for lower-income households and seniors

Koh said that lower and middle-income households receive premium subsidies of up to 50 per cent, while all Merdeka Generation seniors receive additional subsidies of up to 10 per cent on top of these premium subsidies.

All Pioneer Generation seniors will receive special subsidies of up to 60 per cent.

In all, about 35 per cent of total MediShield Life premiums were actually paid by the government, through various subsidies and support in 2019.

Koh also added that for the elderly aged 65 and above, the contribution from the government is greater, at about 50 per cent of their premiums.

For example, Koh said that a 62-year-old lower-income Merdeka Generation senior will have to pay S$1,020 per year before subsidies, under the revised scheme.

After taking into account the various subsidies available, the net premium payable will be reduced to S$663.

In addition, the senior will receive annual MediSave top-ups of S$200 for Merdeka Generation seniors, from 2019 to 2023, which can be used to further reduce the annual effective premium to be S$463, or less than half of the original sum before subsidies.

Vast majority of Singaporeans have sufficient MediSave for premiums

Koh also said that MediShield Life premiums can be fully paid using MediSave, and that the vast majority of Singaporeans have sufficient MediSave for their premiums.

Singaporeans who continue to face difficulties even after subsidies and have limited family support can apply for Additional Premium Support, which will cover all outstanding premiums as well as future premiums, if approved.

This includes those who are mid-way through medical treatment, or have experienced a recent job loss or a reduction in income, said Koh.

The government has also announced a Covid-19 subsidy for all Singaporeans in the next two years, which will pay for the bulk of the premium increase in the first year.

The Covid-19 subsidy, which will cost about SS$360 million over the next two years, will allow the government to subsidise 70 per cent of the net increase in premiums in the first year, and 30 per cent in the second year.

Together with existing premium subsidies, Koh said that the net premium increases for all Singaporeans will be no more than 10 per cent in the first year after the MediShield Life review is implemented.

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Top image via SGH/FB.