Possibility of Allowing Policyholders Over 55 Years Old to Opt Out of Enhanced MediShield Life Scheme
Ministry of HealthSpeakers
Summary
This question concerns Ms Joan Pereira’s inquiry on whether policyholders aged over 55 can opt out of the enhanced MediShield Life scheme to maintain existing coverage and premium rates. Minister for Health Ong Ye Kung responded that opting out is not permitted because universal participation in the national risk pool is essential for collective healthcare security. To manage premium increases, the Government is providing $4.1 billion in support, including enhanced subsidies and MediSave top-ups, which will more than offset the total premium increases over three years. Consequently, more than nine in 10 Singaporeans, including all Pioneer and Merdeka Generation seniors, will face no net premium increase, while Additional Premium Support remains available for those in need. These enhancements are necessary to ensure that MediShield Life protection remains adequate amidst rising healthcare costs and the increased needs of an aging population.
Transcript
34 Ms Joan Pereira asked the Minister for Health whether the Ministry will consider allowing policyholders above the age of 55 to opt out of the enhanced MediShield Life scheme, enabling them to pay premiums at the existing rate with the existing coverage, considering the premium increases resulting from the Government’s acceptance of the MediShield Life Council’s recommendations.
Mr Ong Ye Kung: MediShield Life is our national health insurance scheme to provide basic healthcare security to our population for life. For the scheme to work, all Singapore Citizens and Permanent Residents need to participate in the risk pool. In the spirit of collective responsibility in an inclusive society, everyone contributes so that everyone benefits. There is, therefore, no opting out of this scheme.
The scheme enhancements that were recently announced ensure that MediShield Life protection remains adequate amidst rising healthcare costs, and as one grows older and consumes more healthcare.
To help Singaporeans manage the premium increases, the Government will provide an additional $4.1 billion in support measures, which will more than offset the total premium increases of $1.8 billion over the next three years. The support package includes enhancements to means-tested premium subsidies and MediSave top-ups.
Overall, more than nine in 10 Singaporeans will receive premium support that fully cushions their premium increases over the next three years. For example, all Pioneer Generation and Merdeka Generation seniors are among those who will not see a nett premium increase for the next three years. There is also Additional Premium Support to help Singaporeans who still face difficulty in paying their premiums.