Govt subsidies to offset MediShield Life premium hike
The Government will continue to subsidise up to 50 per cent of MediShield Life premiums for about half the population, in addition to the subsidies the Pioneer and Merdeka generations get. These are permanent premium subsidies that provide help to at least half the population.
On top of that, the Government will give two years of Covid-19 subsidies to Singaporeans to reduce the burden of premium hikes. These amount to a subsidy of 70 per cent of the net increase in the first year and 30 per cent in the second year.
To illustrate, someone in the 51-60 age bracket on his next birthday now pays $630 a year in premiums for MediShield Life. With the change, his premium will go up to $800 a year.
If he is Singaporean with a monthly per capita household income of $1,200 or less, he gets a 30 per cent premium subsidy. He pays $441 annually now.
The amount of subsidy a person gets depends on per capita household income, age and the annual value of the home he lives in.
The Covid-19 subsidy kicks in after the premium subsidy. So in real terms, the premium he needs to pay next year will be $477, or $36 more - although the premium for that age group goes up by $170.
The Covid-19 subsidy is only for Singaporeans and does not apply to the more than half a million permanent residents (PRs).
However, PRs who qualify are entitled to the permanent premium subsidies but at half the rate Singaporeans get.
MediShield Life premiums can be paid entirely with Medisave. - THE STRAITS TIMES