MediShield Life is a mandatory health insurance plan that provides basic protection to all Singaporeans and Permanent Residents against large hospital bills for life.
When MediShield Life replaced MediShield as the basic health insurance plan for the country on 1 November 2015, the Government introduced a transitional subsidy for the first four years of MediShield Life for all Singapore Citizens who faced an increase in their net premiums for MediShield Life.
In the first year, the Government paid 90% of the net increase in MediShield Life premiums above MediShield premiums, and further 70%, 40% and 20% of the net premium increase in the second, third and fourth years of MediShield Life.
As we approach the end of the four years subsidy, many will be paying a higher premium as compared to four years back. Will we still be able to afford the premium? What happens when someone cannot afford the premium?
Stay calm and chill; there are other permanent subsidies put in place for people from the lower to middle income families, Pioneer Generation, Merdeka Generation. And since Medisheild Life is universal health insurance for all Singapore Citizens and Permanent Resident, there is also an additional subsidy for families who need assistance with premiums even after the above subsidies and payment from MediSave.
Premium Subsidies for the lower- to middle-income
A permanent feature, available for lower- to middle-income families with monthly household income per person of $2,600 and below, and living in residences with an Annual Value of $21,000 and below. (Up to two-thirds of Singapore Resident households will qualify.)
Those eligible can receive subsidies of up to 50% of their premiums. Permanent Residents will receive half the subsidy.
Pioneer Generation Subsidies and MediSave top-ups
Pioneers will receive generous Pioneer Generation Subsidies of between 40-60% depending on age. This is regardless of their household monthly income or the Annual Value of their home.
Pioneers will also receive $200 – $800 a year in MediSave top-ups (depending on year of birth) for life, which can be used to pay for their MediShield Life premiums. Click here for more info on the Pioneer Generation Package.
Merdeka Generation Subsidies and MediSave top-ups
From 1 July 2019, Merdeka Generation seniors will receive additional Merdeka Generation Subsidies of 5% of their annual MediShield Life premiums, increasing to 10% after they turn 75 years old, regardless of their household monthly income or the Annual Value of their home. This is on top of the existing Premium Subsidies that the seniors may receive.
Merdeka Generation members will also receive $200 a year in MediSave top-ups, every July for five years from 2019 to 2023. These top-ups can be used to pay for their MediShield Life premiums. Click here for more info on the Merdeka Generation Package.
Additional Premium Support
No one should worry about losing their MediShield Life coverage because they are unable to afford the premiums. This subsidy is for families who need assistance with premiums even after the above subsidies and MediSave use.
All in all, almost two-thirds of Singapore Resident households will receive some form of permanent subsidy and well, if you are the one-third who will not be receiving any subsidy, just remember you are the luck ones because giving is blessing.
