MediShield Life premiums expected to rise as government plans to broaden scheme's coverage

In his address during the Committee of Supply debate on 6 March, Health Minister Ong Ye Kung announced that premiums for Singaporeans' basic health insurance plan, MediShield Life, are expected to increase as part of a comprehensive scheme review aimed at providing greater assurance against large medical bills and covering new groundbreaking treatments.

MediShield Life, which was launched in November 2015, is a compulsory health insurance plan designed to protect all Singaporeans against significant healthcare costs, irrespective of pre-existing conditions, for life.

The anticipated adjustments follow recommendations by an expert panel reviewing the scheme, with conclusions expected by the second half of 2024.

Specifically, the Ministry of Health (MOH) has tasked the 11-member MediShield Life Council, chaired by former Ernst & Young chairman Mrs Fang Ai Lian, to undertake a comprehensive review of the scheme.

This initiative comes in the wake of a previous review in 2020, which saw an average premium increase of 25 percent, and aligns with MOH's commitment in 2019 to revisit claim limits every three years or so.

The council's review will focus on several key enhancements. Firstly, it aims to increase claim limits for both surgeries and hospital stays, providing greater financial assurance to Singaporeans.

"We envisage a fairly significant increase in the claim limits...This will reduce out-of-pocket costs significantly," Ong explained, highlighting potential adjustments for treatments such as angioplasty and accompanying ICU stays.

Additionally, the council will examine ways to enhance outpatient coverage, including raising claim limits for treatments like kidney dialysis and extending coverage to more types of outpatient care.

"MOH is facing an especially difficult challenge for cancer," Mr Ong noted, underscoring the necessity for strategic adjustments in the scheme's coverage to address these escalating costs, particularly in the face of the growing challenge of cancer treatment costs, which have been rising uncontrollably.

The review will also consider the inclusion of cell, tissue, and gene therapy products (CTGTPs) under MediShield Life, acknowledging the revolutionary potential of these treatments in addressing previously incurable diseases.

However, Mr Ong emphasized the need for safeguards to ensure the sustainability of financing CTGTPs, stating that coverage would be extended only to treatments deemed safe, clinically effective, and cost-effective.

While the proposed changes aim to enhance protection against major health episodes, they will necessitate an increase in MediShield Life premiums.

Mr Ong assured that measures would be taken to ensure that premiums could be fully covered by MediSave, including enhancing premium subsidies and MediSave top-ups for specific groups.

"No one will lose MediShield Life coverage due to a genuine inability to afford the premiums," Mr Ong stressed, reinforcing the government's commitment to keeping healthcare accessible and affordable for all Singaporeans.