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One of life’s greatest uncertainties is our health. Regardless of our age, fitness level or how much we invest in staying healthy, even the fittest among us can face critical illnesses, chronic conditions or unexpected injuries that require hospitalisation and treatment.
This is why it’s important for everyone, even newborns, to be covered by at least a basic health insurance plan.
In Singapore, MediShield Life serves as the nation’s universal health insurance scheme, providing a basic safety net for all Singapore Citizens (SCs) and Permanent Residents (PRs). It aims to make healthcare accessible and affordable, particularly for treatments in public hospitals, such as stays in Class B2 or C wards.
Like most insurance plans, MediShield Life operates on the principle of risk pooling, where healthcare costs are shared across the population. The idea is: not everyone will need expensive medical care at the same time. While some people may need help with big medical bills, others might not need much at all. By pooling the money together, it spreads the financial risk across everyone, so no one has to face huge medical bills alone, especially unexpected ones.
How MediShield Life Premiums Are Paid
One of the key advantages of MediShield Life is that premiums can be fully paid using MediSave savings. Premiums are determined based on age groups: younger individuals paying lower premiums due to their lower risk, while older individuals pay higher premiums as they are in age brackets that are deemed as higher risk. Premiums are reviewed regularly to ensure sustainability.
Source: MOH
To ensure affordability, premium subsidies are available for lower- and middle-income families, based on age and income.
Source: MOH
Members of the Pioneer and Merdeka Generations also receive extra subsidies.
While everyone must contribute towards their coverage, retirees or those from lower-income households may struggle to afford premiums. To address this, subsidies ensure essential healthcare remains accessible for all.
Coverage From Birth
From the moment a baby is born in Singapore, they are automatically enrolled in MediShield Life if they are SCs or PRs. This early enrolment ensures every child is covered, safeguarding them from unforeseen medical expenses, including congenital conditions.
The coverage from birth aims to ensure that financial barriers do not prevent children from receiving timely medical care. Medical conditions left untreated in childhood can have lasting impacts. Coverage from birth ensures financial barriers do not prevent timely treatment.
To support young families, each newborn SC receives a MediSave Grant of $4,000. This can be used for the child’s MediShield Life premiums, relieving parents of immediate financial strain.
As MediShield Life is generally designed to cover treatments in public hospitals’ subsidised wards, parents seeking broader coverage, such as private hospital or higher-class ward care, may need to purchase an Integrated Shield Plan with additional out-of-pocket cash.
Transiting To Adulthood
For working adults, MediShield Life acts as a safety net, providing lifelong healthcare coverage – even during job transitions where employer-provided insurance may lapse. Regular CPF contributions to MediSave help pay premiums while building future healthcare savings.
MediSave can also be used to pay the MediShield Life premiums of family members, including spouses, children, and parents.
By maintaining MediShield Life and contributing to MediSave, working adults ensure peace of mind today and a secure framework for healthcare needs in retirement.
Enjoying Our Golden Years
As we age, healthcare needs increase, making MediShield Life indispensable for seniors. It helps cover large hospital bills and selected costly treatments for age-related and chronic conditions, reducing the financial burden on retirees.
To keep premiums affordable, targeted subsidies are provided for elderly Singaporeans, ensuring retirees can access essential healthcare without financial strain.
MediShield Life: A Lifelong Companion
From birth to old age, MediShield Life remains a constant pillar of support, ensuring healthcare remains accessible and affordable. However, like any system, it must evolve to stay relevant.
In the MediShield Life 2024 Review, several recommendations were made to enhance the scheme and to better protect Singaporeans facing major health issues that could lead to large medical bills. These recommendations, which have been accepted by the Government, will be implemented starting from April 2025. The key changes include:
- Increased inpatient/day surgery claim limits to ensure that MediShield Life continues to cover the majority of subsidised bills, alongside MediSave, providing better protection for Singaporeans during major health episodes
- Updated outpatient claim limits and an expansion of outpatient coverage to better support the shift in healthcare delivery from hospitals to outpatient and home-based settings.
- Expansion of coverage to new high-cost treatments, improving access to novel treatments which have shown potential to treat serious diseases effectively.
These changes reflect the government’s commitment to ensuring MediShield Life remains relevant and effective in an ever-evolving healthcare landscape. The goal is to strike the right balance – ensuring healthcare coverage is both sufficient and accessible, while keeping it affordable for all. It’s not just about providing adequate coverage at different stages of life, but offering lifelong protection that grows with us, ensuring we are supported in times of need throughout our entire lives.
Read Also: 10 Facts You May Not Know About MediShield Life
The post From Birth To The End Of Life: How MediShield Life Supports Singaporeans Throughout Life’s Journey appeared first on DollarsAndSense.sg.
