Top-ups to Medisave Accounts

4.7 Second, Medisave. Many Singaporeans are very concerned about healthcare costs. Our healthcare financing framework – based on a combination of savings, insurance, and government subsidy – is fundamentally sound. It has enabled the vast majority of Singaporeans to have access to good, affordable healthcare, while keeping national healthcare spending low. But we need to constantly adjust it, so that Singaporeans can continue to afford good healthcare as our population ages and medical costs increase.

4.8 The Ministry of Health is revamping MediShield, to give better coverage for large hospital bills. This means raising MediShield premiums, as well as raising the deductibles which the patients will have to pay out of their own Medisave. Most Singaporeans can afford the premium increases, which will not exceed $135 per year. However, some may face difficulties, especially older Singaporeans whose premium increases are larger and who are no longer working. The NTUC has asked the Government to consider topping up the Medisave accounts of Singaporeans, to help them adjust to the new premiums. And I am happy to say we will do so.

4.9 The Government will give Medisave top-ups to adult Singaporeans. It will pay between $50 and $350 into each Medisave account, depending on age. Older Singaporeans will receive larger top-ups. Members can see the figures on the screen. If you are 60 and above, you get the largest top-up ($350). The quantum of the top-up will be enough to cover at least two years of premium increases. This top-up will cost the Government $320 million.

Table 1: Schedule of Medisave Top-Ups