MediShield Life amendment Bill seeks to expand measures for recovering premiums, support new models of care
Discouraging policyholders from defaulting on their premiums will keep the insurance scheme sustainable, says minister
THE authorities will gain expanded avenues to serve notices to defaulters of MediShield Life premiums, following the passage of the MediShield Life Scheme (Amendment) Bill in Parliament on Monday (Nov 11).
Speaking in Parliament earlier at the Bill’s second reading, Minister of State for Health Rahayu Mahzam emphasised the importance of premium recovery for MediShield Life.
“For a universal scheme like MediShield Life, premium recovery is necessary to discourage policyholders who can afford to, but wilfully decide not to fulfil their premium obligations,” she said. “This in turn keeps the scheme sustainable.”
The minister noted that, over the years, premium defaults have “remained low” at below 1 per cent. Yet, there remains “a small group of individuals” who fail to meet their obligations.
By law, a demand note must be served before any enforcement action is taken against defaulters. Currently, this is done through mail.
However, mailing demand notes can hinder recovery efforts in cases where defaulters’ valid addresses are unavailable, she said.
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The proposed amendments would allow for demand notes to be served via alternative communication channels, including e-mail.
The changes would also enable notices to be issued through existing service platforms, such as the Inland Revenue Authority of Singapore’s myTax portal, thus streamlining the notification process and improving reach.
On Oct 15, the Ministry of Health (MOH) had announced that MediShield Life claim limits and premiums will increase from April 2025 to address rising healthcare costs.
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To cushion the impact, the government will provide S$4.1 billion in subsidies and MediSave top-ups over three years.
In addition to bolstering premium-recovery provisions, the proposed amendments in the Bill aim to expand coverage to new models of care and enhance the scheme’s administration, added Rahayu.
One key change involves updating the current legislation’s language to allow treatments or services to be received “from” an approved medical institution, rather than strictly “in” one, broadening the range of care settings covered.
A new framework will also be introduced, which will empower the minister for health to approve, suspend, or revoke providers’ status as approved medical institutions under MediShield Life on a treatment or service-specific basis.
Meanwhile, to enhance the scheme’s administration, MediShield Life premiums will be made more accessible by being published on MOH’s website, rather than specified in legislation. Currently, premiums must be detailed in regulatory documents.
MPs’ concerns
On Monday, seven Members of Parliament (MPs) rose to speak on the debate.
Yio Chu Kang SMC MP Yip Hon Weng and Nominated MP Neil Parekh raised concerns about the “broad powers” required for approvals, suspensions, and revocations, and questioned how continuity of care would be ensured for patients currently receiving treatment if suspensions or revocations occur.
In response, Rahayu noted that under current regulations, enforcement actions against an approved medical institution for non-compliance would result in suspending or revoking the institution’s approval entirely.
The proposed amendments aim to allow the health minister to approve, suspend, or revoke status on a treatment or service-specific basis.
In cases where approvals are revoked, the institution’s ability to submit claims for other treatments or services via different delivery modes will remain valid, and claims for services provided before the suspension or revocation will continue to be processed, Rahayu explained.
Opposition MP Gerald Giam of Aljunied GRC questioned whether policyholders who miss payments, such as those ineligible for premium support, risk losing their MediShield Life coverage due to unpaid premiums.
“We try very hard to ensure that people will not lose their coverage because of that,” Rahayu said.
She added that for those in “truly dire circumstances”, the government has processes in place to identify them and provide necessary support.
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