MediShield Life: premiums collected and premiums used

BETWEEN 2016 AND 2019

A total of $7.5 billion in premiums were collected. You will notice that a big bulk of it comes from the Government in the form of subsidies.

Of this, $4.4 billion were collected from policy holders and $3.1 billion from the Government in premium subsidies.

In the same period, a total of $3.5 billion in claims were paid out, while $3.0 billion was set aside for future premium rebates.

The Incurred Loss Ratio (ILR) of the Fund was an average of 104% over the period from 2016 to 2019.

This means that the total premiums collected was slightly less than the total monies required to ensure that the Fund is able to meet current claims and future commitments.

The MediShield Life Fund has to remain solvent and sustainable so that it can meet its obligations to policyholders. It has to be self-sustaining.

Premiums collected have to cover potential current and future payouts, including amounts set aside to support future commitments as well as provide a buffer against unforeseen contingencies such as unexpected spikes in hospitalizations due to disease outbreaks.

- Source: Dr Koh Poh Koon's speech in Parliament.

8 in 10 hospital bills cost less than $100 in cash payment

SIGNIFICANT SUBSIDIES for hospitalization bills in subsidised wards.

The Government provides 𝐬𝐢𝐠𝐧𝐢𝐟𝐢𝐜𝐚𝐧𝐭 𝐬𝐮𝐛𝐬𝐢𝐝𝐢𝐞𝐬 𝐨𝐟 𝐮𝐩 𝐭𝐨 𝟖𝟎% for both the surgical procedure and daily hospital charges which include any number of tests, scans and rehab services which may be required as part of the treatment episode.

Medishield Life is targeted at helping patients with more costly bills.

For hospitalization involving a more complex surgical procedure, Medishield Life will cover about 15 to 20% of total bill in a subsidised ward on average while Medisave pays for about 5 to 10%. 𝐀𝐛𝐨𝐮𝐭 𝟑% 𝐨𝐟 𝐭𝐡𝐞 𝐛𝐢𝐥𝐥 𝐢𝐬 𝐭𝐡𝐞𝐧 𝐩𝐚𝐢𝐝 𝐟𝐨𝐫 𝐢𝐧 𝐜𝐚𝐬𝐡.

For example, an average subsidised bill for a heart artery by-pass surgery - a much more complex surgery - could cost probably about $33,000 before subsidy where MediShield Life pays for about $7,300, MediSave covers about $1600 and the patient pays for the remainder of about $200 cash.

So the bulk of it is still taken care of by subsidies.

So overall, for all treatments including less complex surgeries, 8 in 10 subsidised hopitalisation bills incurred by Singaporeans cost $100 or less in cash.

Affordable healthcare: Bill of a premature baby

Thank you, Kenneth Tiang, for sharing your experience and your baby's bill with us. It adds another piece of valuable proof to the heap of stories that have been shared with this page on affordable healthcare.

A premature baby spent 5 months in the neonatal intensive care unit and incurred a bill of $326,152 !!

Government grant: a whopping $249,531
Medishield Life accounted for $72,372

Medisave paid for $4249

Out-of-pocket payment? $ZERO

If that is not a great system, what is?

We have a very good healthcare system with the 3Ms, so let's not mindlessly attack the system for other agenda because you don't like the government.

And yes, for all their imperfections, we do have a great government too.

Affordable healthcare through the 3Ms

Generous government subsidies, together with Medishield Life and Medisave have made heathcare in Singapore affordable.

Take this example here. The patient incurred a bill of $13,154 for a 9-day stay in a C Class ward at TTSH.

Government subsidies: $9493
Medishield Life: $2060

𝐌𝐞𝐝𝐢𝐬𝐚𝐯𝐞: $𝟏𝟕𝟐𝟗
Out-of-Pocket payment: 0

The amount paid with Medisave represents 13% of the total bill. Government subsidies and Medishield Life took care of 87% of the bill.

You enjoy the same good quality medical care by a team of doctors during your stay in hospital even if it is C Class.

Something to be thankful for.

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