Review of MediSave Withdrawal Limits with Rise in Healthcare Costs
Ministry of HealthSpeakers
Summary
This question concerns the review of MediSave withdrawal limits to help Singaporeans manage rising healthcare costs, as raised by Ms Hany Soh. Minister for Health Ong Ye Kung explained that limits are regularly adjusted, citing the 2021 introduction of a $700 limit for complex conditions and the 2023 HealthierSG policy removing cash copayments. He noted that MediSave is designed to preserve funds for lifetime needs, particularly for significant health episodes during old age. Among the 1.4 million annual MediSave users, approximately 1,500 appeal for higher withdrawal limits each year. About 40% of these appeals are approved for patients assessed to have genuine affordability concerns.
Transcript
60 Ms Hany Soh asked the Minister for Health (a) when did the Ministry last review and adjust MediSave withdrawal limits; and (b) whether the Ministry is considering raising MediSave withdrawal limits to better help Singaporeans cope with rising healthcare costs.
Mr Ong Ye Kung: MediSave is intended to help Singaporeans offset healthcare expenses over their lifetime, especially during significant health episodes requiring surgery and long hospital stay, which tend to happen during old age. It is, however, understandable that when young, we want to use more of our MediSave balances as we cannot anticipate the need for MediSave when we are old.
Hence, the Ministry of Health has schemes like MediSave 500/700, Flexi-MediSave and MediSave for diagnostics scan to cover more regular outpatient treatments. The areas of coverage and its limits are regularly reviewed and adjusted. For example, in 2021, we introduced a higher $700 limit to better support patients with complex chronic conditions who needed to seek care more frequently. In 2023, residents enrolled in HealthierSG can use MediSave to cover their copayment under the Chronic Disease Management Programme fully, without having to make any cash contributions.
Over the last three years, around 1,500 appeals were received annually from Singaporeans requesting to use their MediSave beyond withdrawal limits, out of roughly 1.4 million Singaporeans who make MediSave withdrawals each year. Around 40% of these were assessed to have genuine affordability concerns and were approved.