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Why is the Basic Healthcare Sum adjusted yearly?

To ensure that the Basic Healthcare Sum (BHS) remains relevant for every cohort, we need to adjust it regularly to keep pace with the growth in MediSave use by the elderly, especially with rising healthcare costs and expansions in MediSave uses. The BHS is adjusted yearly for cohorts below age 65.

The BHS for each cohort is fixed from age 65 onwards and the same BHS applies to them for the rest of their lives. This will help members save enough for their basic subsidised healthcare needs in old age, while providing some certainty on the amount they need to set aside in their MediSave Account for their old age.