Gov’t expands MediShield Life healthcare coverage, raises premium subsidies

The government will expand coverage for mental health and outpatient services and provide premium top-ups.

Singapore will expand MediShield Life coverage following the passing of the MediShield Life (Amendment) Bill on 11 November.

The amendment will extend coverage to mental health services, outpatient and home care, and increase premium subsidies for the elderly and lower-income groups.

The government will expand the coverage for repetitive transcranial magnetic stimulation for treating depression and increase the MediShield Life psychiatric ward limits by about 40%, from $160 per day to $230 per day.

MediShield Life will also introduce a new $500 outpatient deductible to cover larger outpatient bills and will increase MediSave withdrawal limits to help patients pay for the higher deductibles.

For lower-income households and seniors who may lack sufficient MediSave, the government will provide MediSave top-ups. Singaporeans facing financial difficulty with healthcare bills, even after subsidies, MediSave, and MediShield Life, can also apply for additional assistance through MediFund. 

In addition, the MediShield Life premium will be increased in phases evenly over three years up to 35%, which will give an average of 22% increase per policyholder by 2028.

Means-tested premium subsidies for older Singaporeans in lower- to middle-income households will also be increased to 60% from 50% previously.

Seniors with lower MediSave balances will also receive additional MediSave top-ups from the government to help pay MediShield Life premiums. 

These include an annual MediSave top-up increase of up to $300 for the Pioneer Generation, a $500 boost to the one-time MediSave Bonus under the Majulah Package for Young Seniors, and an additional $500 MediSave Bonus for both Young Seniors and the Merdeka Generation.

Meanwhile, lower-income Singaporeans needing extra help with premiums, after subsidies and top-ups, can apply for Additional Premium Support, which will fully cover premiums for the next two years.

"Premiums will need to go up, but we have provided a significant package of support that offsets premium increases for more than nine in ten Singaporeans over the next three years,” Rahayu Mahzam, Minister of State at the Ministry of Health said.

"The Government will continue to work with the MediShield Life Council to review the scheme regularly, ensuring it remains a reliable source of assurance for large healthcare bills and that its premiums remain affordable for Singaporeans,” she added.