Self-employed Persons Affected by Increase in MediShield Life Premiums and Measures to Improve Financial Resilience
Ministry of ManpowerSpeakers
Summary
This question concerns the proportion of self-employed persons (SEPs) with insufficient MediSave balances for upcoming MediShield Life premium increases and the measures available to support them. Ms See Jinli Jean inquired about SEPs in arrears and strategies to improve their financial resilience to meet healthcare obligations. Minister for Manpower Dr Tan See Leng stated that 1.4% of active SEPs have balances below projected 2027 premiums, with 0.7% in arrears, and detailed a $4.1 billion support package. This package includes enhanced means-tested subsidies and MediSave top-ups, such as the Majulah Package, alongside affordable instalment plans via the CPF Board. He emphasized that Additional Premium Support ensures no individual loses coverage due to genuine financial inability to pay.
Transcript
30 Ms See Jinli Jean asked the Minister for Manpower in respect of the increase in MediShield Life Premiums from April 2025 to March 2028 (a) what is the proportion of self-employed persons across the age groups (i) whose annual MediSave contributions fall below the indicative increased premium (ii) who are in arrears and cannot pay for their MediShield premiums via MediSave; and (b) what measures are in place to improve the financial resilience of such self-employed persons to keep up with their MediSave contributions.
Dr Tan See Leng: As of end-2023, 1.4 per cent of active self-employed persons (SEPs)1 had MediSave balances lower than the MediShield Life premiums in 2027 after the increase has been fully phased in2, of which, half (i.e., 0.7 per cent of active SEPs) were unable to keep up with their MediSave contribution obligations. SEPs who have difficulty making their MediSave contributions can approach the Central Provident Fund Board to work out an affordable instalment plan, to build up their healthcare savings.
The Government is committed to helping Singaporeans, including SEPs, manage the MediShield Life premium increases.
The Government announced a $4.1 billion support package that includes enhancements to means-tested premium subsidies, which will help older SEPs from lower- to middle-income households. It also includes MediSave top-ups, such as the enhanced one-time Majulah Package MediSave Bonus, the additional MediSave Bonus for Young Seniors, the Merdeka Generation seniors with lower MediSave balances and the enhanced one-time Budget 2024 MediSave Bonus.
No one will lose their MediShield Life coverage due to financial difficulties. Those who are truly unable to pay for their premiums will be eligible for Additional Premium Support to cover their outstanding premiums fully.