More transparency for MediShield Life and more dampening of healthcare costs

ENHANCEMENTS to MediShield Life, the national compulsory healthcare insurance scheme, are surely good news. Based on the recommendations of the MediShield Life Council, proposed improvements include new treatment-specific claim limits and raising the annual claim limit from S$100,000 to S$150,000 to help plug gaps that could result in out-of-pocket expenses among policyholders.

Public consultation on the recommendations closed this week. Not surprisingly, the overwhelming public concern has centered on the impending premium hikes. Thanks to a government commitment, MediShield Life premiums were held constant in the past five years despite benefit enhancements between 2018 and 2020. The proposed increases are partly to account for enhancements in the years when premiums were held constant. That, however, is cold comfort.

The premium increases range from around 11 per cent for those of age 20 and younger, to over 35 per cent for those 61 and older. This is on top of escalating premiums among private Integrated Shield plans (IP), which sit on top of MediShield Life. IPs kick in once the benefit limits of MediShield Life are hit. About 70 per cent of residents hold an IP. To be sure, the government's S$2.2 billion support package will cushion the premium increases, at least for three years.