Last Updated on June 14, 2023 by Tree of Wealth

Without a doubt, the past year has been filled with ups and downs for every single one of us. Not only did we have to deal with a global pandemic but we also had to change the way we live our lives. Many of us are getting tired of the current dynamic circumstances and just want to go back to normal. However, if you are a permanent resident or a citizen of Singapore, then you need to prepare for at least one more change first.

The government plans to make several changes in your MediShield Life coverage and premiums within 2021. One of the main changes we have to contend with is the hike in premiums. This is no doubt bad news for many of us because our wallets are already ravaged by the pandemic. However, it is not all bad news and you can expect increased coverage to match the higher premiums.

Why is the Government Updating MediShield Life?

The main reason why we are seeing changes to MediShield Life today is because this program is simply not enough to cover basic hospital bills. The cost of healthcare has been steadily rising and slowly making MediShield Life obsolete and this is something that many of us have already experienced, with its previously skimpy services. So much so that most Singaporeans have supplemental insurance because MediShield Life was fairly useless.

However, this program is still great for those of us who cannot afford better insurance or are living paycheck to paycheck. But the government is not satisfied with the current status quo. With the new changes they aim to not only make this healthcare program more effective for those in need but to also become more useful for the majority of Singaporean citizens.

With all of that said, what are the changes to MediShield Life? Well, there are three main updates you will want to take note of, such as:

• Private Healthcare Coverage Will be Reduced
• Coverage for MediShield Life Will be Expanded
• Premiums for MediShield Life Will Go Up

Reduced Private Healthcare Coverage

The main use of MediShield Life is to provide coverage for individuals seeking healthcare at public hospitals. However, it is possible to use this program to cover a portion of your private hospital bills if you have an IP or integrated shield plan. The bill will be split between your private insurer and MediShield Life. Before, you can expect MediShield Life coverage up to 35% but that has been changed to 25%.

This means your private supplemental insurance provider will need to take up a larger portion of the bill. Since these insurance providers are running businesses, you can expect your IP premiums to increase alongside your MediShield Life premiums.

However, if you go to a public hospital with an IP, then MediShield Life will still have a cap of 35%.

Expanded Coverage for MediShield Life

Yes, it hurts that we have to give the government even more of our hard earned cash but we aren’t paying for nothing. With the increase in premiums, your coverage will be expanded significantly to match your new expenses. Even though you are spending more money, it will be worth it if you ever need to make a claim. Here are the details on the expanded coverage:

Reduced Day Surgery Deductible for Senior Citizen Patients 80 and Older

The deductible dropped from $3,000 to $2,000 to make it easier for elderly patients to make a claim and get the financial assistance they need for surgery instead of getting hospitalised for claims.

Increased Claim Limits for Cancer Radiotherapy

Depending on the treatment, you can expect $140 to $300. However, certain treatments entitle you to $900.

Increased Annual Claim Limit

Your annual claim limit will be raised from $100,000 to $150,000.

Increased Claim Limits for 2 Kinds of Outpatient Treatments

You can expect raised claim limits for both immunosuppressants for organ transplants and for kidney dialysis.

First 2 Days of Stay Receive Extra $400

You can expect an extra $200 per day for the first two days you stay in the hospital. This is because during the first two days, you will be typically doing lab and diagnostic tests.

Increased Claim Treatment and Daily Ward Limits for Acute Hospital Stays

If you are hospitalized in either the psychiatric ward, intensive care unit, or in a normal ward, you will be able to claim more per day than before.

Exclusions Removed

MediShield Life now covers intentional self-injury, alcoholism, drug addiction, and attempted suicide. All of these were excluded before the 2021 update.

Increased Claim Limits for Public Staying at Public Hospitals

The claim limit for community hospitals went from $350 per day to $430 per day.

Increase in Your MediShield Life Premiums

This is an update that had to be done but it is still a bitter pill to swallow for many of us. With the ever increasing cost of healthcare, an aging population, and with Covid-19 besieging our way of life, the government had little choice but to increase the premiums to ensure every citizen has the support they need.

How much more are you going to need to pay? Well, this will depend on a number of factors like your age. Older individuals will see the highest increases. However, the majority of citizens will see an increase of around 35% to their premiums. Here is what you can expect to pay:

Age at next birthday	Current premium	REVISED premium
1-20	$130	$145
21-30	$195	$250
31-40	$310	$390
41-50	$435	$525
51 -60	$630	$800
61-65	$755	$1,020
66-70	$815	$1,100
71-73	$885	$1,195
74-75	$975	$1,320
76-78	$1,130	$1,530
79-80	$1,175	$1,590
81-83	$1,250	$1,675
84-85	$1,430	$1,935
86-90	$1,500	$2,025
>90	$1,530	$2,055

It is important to know that the government is offering Covid-19 Subsidies to help with the increasing cost of living during the pandemic. This subsidy will last for two years and it is designed to help lessen the burden that is being placed on your wallet.

The subsidy will be distributed to Singaporean citizens based on a per capita household income, annual value of home, and age. Individuals that have more than one property or homes greater than the value of $21,000 will not receive any subsidies.

Lower to middle income citizens can still use the same government subsidies that were offered before such as the Merdeka Generation and Pioneer subsidies.

What Should You Do?

This would be a good time to assess your financial situation and health related insurance policies. Almost all insurance providers have already revised their rates, which means you may want to search for policies that are much more affordable if you are worried the increase will have a significant impact on your financial situation.

No one likes more expenses but at the end of the day this MediShield Life update is a good thing and it will help every single one of us when we need it.