9 Oct 2026
SOURCE: CPF Board

Healthcare planning requires doing your homework and sifting through various sources for the right information. Sometimes, this might even mean discerning if the things you’ve read or heard are legitimate. Let’s take a look at four myths about healthcare schemes and clear up the misconceptions about them!

This is false. While it’s true that you can pay your MediShield Life premiums with your MediSave, it’s not the only way to do so. You can also use your family member’s MediSave to pay the premiums and help your loved ones shoulder their healthcare costs as well.

Of course, your MediSave savings can do more than just pay for insurance premiums. From health screenings to cancer drug treatments, MediSave can help with approved healthcare expenses, so it's important to familiarise yourself with its uses.

Making regular cash top-ups to your MediSave Account (MA) could be a good regular habit to cultivate, so that you maintain some savings for your healthcare needs. After all, your MA savings also earn a base interest rate of 4% per annum, and you can also earn tax relief with top-ups to you and your loved ones’ MA savings too, subject to eligibility conditions.

This is false.

ElderShield is a long-term care insurance targeted at severe disability, which provides cash payouts of $300 or $400 per month, for up to five or six years, depending on the plan type.

Before CareShield Life was introduced, Singapore Citizens and Permanent Residents with MediSave Accounts were generally enrolled in ElderShield at age 40 unless they opted out. CareShield Life was launched on 1 October 2020. Singapore Citizens and Permanent Residents born in 1980 or later are automatically covered from age 30, or from 1 October 2020, whichever is later.

If your parents were not automatically enrolled in CareShield Life, they may still apply to join, subject to eligibility. They can access the Application to join CareShield Life e-Service with their Singpass and enjoy a 60-day free-look period to review their coverage.

This is false.

MediSave and MediShield Life can also be used at approved private hospitals and medical institutions, subject to the applicable uses and claim limits.

Medisave helps you pay for approved healthcare expenses, while MediShield Life is a health insurance that helps cover large hospital bills and selected outpatient treatment costs.

However, as MediShield Life benefits are designed around subsidised treatment in Class B2/C wards at public hospitals, it will generally cover a smaller portion of bills incurred at private hospitals or Class B1/A wards. If you want more coverage for higher class wards and/or private hospitals, you can consider getting an Integrated Shield Plan (IP).

This is false.

An IP offers additional healthcare coverage by combining your existing MediShield Life coverage with private insurance.

The premiums you pay under an IP are split into two components:

• MediShield Life component

This is your existing MediShield Life coverage, and is fully payable with your MediSave.

• Additional private insurance component

This is the additional private insurance component that provides coverage beyond MediShield Life. Its premiums can be paid using MediSave up to the Additional Withdrawal Limit, with any amount exceeding this being paid in cash.

If you are eligible for MediShield Life premium subsidies, these will continue to apply even if you have an IP. Should you discontinue your IP, you will still be covered by MediShield Life.

When planning for healthcare expenditure, it’s important to work with accurate information so you don’t end up spending more or less than necessary. By understanding the myths and misconceptions of MediSave, MediShield Life and CareShield Life, you can approach healthcare planning with greater clarity and peace of mind.

On top of that, having a tool to help you project your health insurance costs can be a great asset, as it will allow you to accurately gauge how much you need to spend, and adjust your plans accordingly.

When you’re properly equipped with the right knowledge and tools, you’ll be able to tackle planning for both healthcare and your savings with more confidence, to ensure you’re covered no matter what life throws your way.

All information provided are accurate as of the date of publication.