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This brings me to MediShield -- we will be enhancing MediShield to become MediShield Life to provide lifetime peace of mind and
better benefits for all Singaporeans, regardless of how their life and health circumstances may change.
This includes extending coverage to the very
elderly and those with pre-existing conditions. I am glad that many Singaporeans support the
shift to provide lifetime coverage and better benefits under MediShield Life for all Singaporeans.
MediShield Life is as much about giving all Singaporeans greater peace of mind, as it
is about us forging a new social compact -- with everyone chipping in to better protect one
another from having to face life's uncertainties alone.
Let me now focus on the issue of MediShield Life premium affordability, which some members
have expressed concerns about. With better coverage and benefits under MediShield Life,
premiums will also need to increase. With this shift to MediShield Life, I want
to assure Singaporeans that the Government will ensure that premiums remain affordable,
especially for the low-income and elderly, as suggested by the Committee.
The cost of bringing in the currently uninsured should be shared across those with pre-existing conditions,
the existing insured policies and the Government.
Therefore, as suggested by the Committee, this cost of bringing those who are not currently not covered ino the MediShield Life
should be shared among those who are currently uninsured, as well as those who are not existing insured policyholders and the Government.
However, the Government intends to support
most of the initial costs of universal coverage under MediShield Life.
We will also introduce permanent subsidies for the lower- to middle-income groups.
The Review Committee is still discussing the key features of MediShield Life and studying
the impact on premiums. But let me just share with the house the approach
we intend to take to keep premium increases affordable when we shift from MediShield to
MediShield Life as follows. Firstly, for a typical Singaporean household --
comprising a working-age couple with two school-going children -- MediShield Life premiums
will take up no more than half of their annual Medisave inflows (including top-ups and Workfare where applicable).
In fact, for such typical households in the
lower- to middle-income groups, we aim to keep their net premiums to the current level
or lower, after taking into account the permanent subsidies that the Government will provide,
additional Medisave contributions and the top-ups.
Whereas for the older individual Singaporeans aged 55 to 64 and currently on MediShield,
those up to median income will see no net premium increase, taking into account permanent
subsidies and Medisave top-ups. For those aged 65 and above this year, the
PG package announced earlier would provide sufficient support for MediShield Life.
There could still be those very needy who are unable to pay their remaining share of
premiums even after the permanent subsidies and Medisave top-ups.
I would like to reassure them they will be provided additional financial assistance,
such as through Medifund. Our intent is that no Singaporean will drop
out of MediShield Life because of their inability to pay for the premiums.
However, government support is necessarily targeted at those groups who need help with premium payments.
Those who have the means should still pay our own share.
In this way, we look after one another.
Nonetheless, to further help with the shift to MediShield Life and cushion the impact
on premiums, the Government will provide additional transitional premium subsidies for all Singaporeans,
regardless of income. More details on the finalised parameters of
MediShield Life benefits, premiums and subsidies will be announced after my Ministry has studied
the final recommendations of the Committee. The Committee is expected to complete its
review and submit the recommendations to the Government in the middle of the year.