Annual Value is an assessment criterion for MediShield Life Premium Subsidies. Will there be any flexibility in premium payment for "asset-rich, cash-poor" citizens?
In general, Government subsidies should be targeted at those in greater need. The assessment approach for MediShield Life Premium Subsidies uses the household monthly income per person and Annual Value (AV) of homes as a way to assess the household’s means and better target these subsidies. In addition, those who own multiple properties will not be eligible for Premium Subsidies.
The household assessment process strikes a balance between being more precise in assessing applicants’ means and keeping the process simpler for applicants and administratively practical. The approach aims to provide us with a fair and objective basis to take a person's income and wealth into consideration.
Annual Value is a relevant consideration, as among those with similar income, those who live in homes with a higher AV would generally be better off than those who live in homes with a lower AV. The current $21,000 AV threshold and the revised $25,000 AV threshold (from 1 January 2024) cover all HDB flats and a small number of private properties. Similarly, Singapore Residents who own multiple properties would also have more means to pay for their premiums.
Aside from Premium Subsidies, Singapore Citizens who belong to the Pioneer Generation or Merdeka Generation are given subsidies from 40% - 60% or 5% - 10% respectively.
For Singaporeans with difficulties affording MediShield Life premiums even after the various Government subsidies, there will be Additional Premium Support available on a case-by-case basis, in line with family circumstances.
Those living in homes with higher AVs or own multiple properties will also continue to benefit from substantial healthcare subsidies e.g. at polyclinics and public hospitals. From time to time, they also receive MediSave top-ups to help them with healthcare expenses.
Overall, premiums are aimed to be both fair and progressive, with general subsidies available to all Singapore Residents and support tiered to help those in greater need.
