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Why did MediShield Life premiums have to increase in 2021 especially during the economic downturn?

Premiums did not change for the first five years of MediShield Life, in line with the Government’s earlier commitment. They need to be adjusted for the MediShield Life Fund to remain solvent and sustainable.

Premiums are priced by actuaries based on established actuarial principles, taking into account claims experience such as utilisation rates and cost of medical treatment, scheme benefits, among other factors.

There are three main reasons for the premium increases:

(1) The number of claimants has increased by about 30% and the annual payouts have increased by about 40% over the last four years. This accounted for the bulk of the premium increases i.e. about two-third;

(2) One-quarter of the premium increases is from refreshing the claim limits; and,

(3) The remaining 8% (or one-twelve) of the premium increases supports the benefit enhancements including those implemented since 2018, such as the extension of coverage to inpatient hospices and serious pregnancy complications.

The Government has committed up to $2.2 billion in premium subsidies and support over the next three years, to help Singapore Residents with their premiums.

Premium payment will be deferred until end December 2021, for those who have insufficient MediSave balances and are unable to pay their premiums due to the economic impact of COVID-19. If you need more help, you can also apply for Additional Premium Support  for assistance with your premiums.