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.
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