SINGAPORE — The MediShield Life Review Committee (MLRC) has revealed its recommendations on premiums for Singapore’s universal public insurance scheme in its full report released today (June 27).

This follows the committee’s announcement of the recommendations it made to enhance MediShield Life benefits earlier this month.

Although premiums will rise with the enhanced benefits and widened coverage, the committee said that with the premium and transitional subsidies in place, the maximum increase in the first year will be less than S$3 per month for lower- to middle-income Singaporeans and no more than S$6 per month for the higher-income.

After the four-year transitional subsidies end, premium increases will range from S$3 to S$11 a month for the lower-income and S$5 to S$14 a month for the middle-income. Premium increases for the higher-income will range from S$7 to S$30 a month.

The permanent premium subsidies are available to two out of three Singapore households and the transitional subsidies apply to all Singapore citizens to offset premium increases over four years. Altogether, the Government will put in close to S$4 billion over five years to support MediShield Life.

A Singaporean aged 31 to 40 currently pays S$9 a month for MediShield and will pay S$26 a month before applying both subsidies when MediShield Life kicks in. With the permanent and transitional subsidies, a lower-middle-income person — with monthly per capita household income of S$1,101 to S$1,800 — in that age band will pay S$11 a month in the first year. After the transitional subsidies expire in 2019, the person will pay S$21 a month.

Someone within the pioneer generation aged 71 to 73 currently pays S$47 a month and will pay S$74 a month for MediShield Life. He/she will pay S$41 a month regardless of income after subsidies are applied.

All pioneers aged 80 and above this year will have their premiums fully covered after the premium subsidies and MediSave top-ups.

For Integrated Shield Plans (IPs), the MLRC has recommended the Government work with the industry to develop key features for standardised IPs and let those insurers managed policyholders with pre-existing conditions differently from healthy ones, including allowing for risk-loading.

Mr Bobby Chin, MLRC Chairman, said he is confident the recommendations made will help patients pay less out of pocket when they are faced with large hospital bills.

Earlier this month, the committee announced its recommendations on the enhanced benefits, which include many of the claim limits going up and premium rebates starting earlier at the age of 66 instead of 71.

Under MediShield Life, nearly six in 10 B2 and C Class patients with large bills exceeding S$10,000 will pay less than S$3,000, in Medisave and cash, from only one in 10 today.

The Government has accepted all the recommendations of the committee on the design of the MediShield life scheme.