$4.1b in govt support to cushion MediShield Life premium hike

$3.4 billion to go to extra MediSave top-ups; the rest for enhancing premium subsidies

- Zhaki Abdullah

A package of $4.1 billion in support measures will be provided to Singaporeans to cushion the increases in premiums for MediShield Life, planned to go into effect progressively from April 2025.

Of that, $700 million will go to enhancing premium subsidies over three years, while $3.4 billion will be given to additional MediSave top-ups, the Ministry of Health (MOH) announced on Oct 15.

Premiums will go up by an average of 22 per cent by March 2028. Lower- and middle-income Singaporeans in older age groups will see their premium subsidies increased by 5 to 10 percentage points.

Individuals in these groups will be eligible for premium subsidies of up to 60 per cent from April 1, 2025, up from 50 per cent currently.

The annual MediSave top-ups for Pioneer Generation seniors, aged 75 and older, will be increased by up to $300, bringing the maximum annual top-up to $1,200.

Under the Pioneer Generation Package, those above 90 in 2025 will continue to have their MediShield Life premiums fully covered by these annual top-ups and existing subsidies, while those 90 and below will still see about two-thirds of their premiums covered, said MOH.