MediShield Life Promises More Coverage and Benefits in 2021 – What Does This Mean For You?

Marissa Saini
·4-min read

MediShield Life: COVID-19 edition is set to come into play with better perks. Here’s everything you need to know!

The new normal will soon herald wider MediShield Life coverage and higher payouts to safeguard Singaporeans and Permanent Residents (PR) against the plight of rising healthcare costs, especially in our post-COVID-19 world. 

It comes at an increase in our MediShield premiums that’s set to kick in early next year in 2021. That is, if the recommended changes proposed by the MediShield Life council are approved. Before government subsidies, these slew of enhanced benefits and better coverage will come with a hike of between 11.5% to 35.4%. 

To help tide Singaporeans over the proposed hike, the government will dole out a one-off COVID-19 subsidy that will be effective for the first two years.

What is MediShield Life?

Designed to cover large medical bills, it is a national health insurance scheme paid from your MediSave account. For more information, check out our article on MediShield Life here.

What does the COVID-19 subsidy mean for you?

In the first year, Singaporeans will receive a subsidy of 70% on the premiums increase. This subsidy will dip to 30% in the second year. 

If you’re part of the Merdeka Generation (those born between 1950 to 1959),  you’ll receive a bonus subsidy of 5% to 10%.

This COVID-19 subsidy will kick in on top of the existing 15% to 50% subsidy available for lower and middle-income groups.

Same goes for Singaporeans who fall under the Pioneer Generation Package (those born on or before 31 December 1949 with a Singapore citizenship on or before 31 December 1986). If you’re a Pioneer, you’ll receive the COVID-19 subsidy in addition to your existing 40% to 60% subsidy.

What are the key perks of the new and improved MediShield Life?

You’ll notice plenty of benefits from the get-go, with raised coverage for hospital stays and outpatient treatments the likes of sub-acute and rehabilitative care. 

There’s also extended coverage for those seeking treatment for alcoholism, drug abuse, and attempted suicide.

Another noteworthy benefit: patients aged 80 years and above no longer need to be warded to be covered by MediShield Life. 

Refer to the table below of the key differences between the current MediShield Life plan and the proposed changes that take effect in 2021.


Before Recommended Changes

After Recommended Changes

Yearly claim limit

$100,000

$150,000 

Hospitalisation in normal ward

$700 per day

$800 per day*

Hospitalisation in ICU

$1,200 per day

$2,200 per day*

Coverage for sub-acute care at community hospitals

$350 per day (Combined for sub-acute care and rehabilitative care at community hospitals)

$430 per day

Coverage for rehabilitative care at community hospitals

$350 per day (Combined for sub-acute care and rehabilitative care at community hospitals)

$350 per day

Claim limits for outpatient kidney dialysis

$1,000 a day

$2,200 a day 

Deductible for day surgery (eligible for 81 year olds and above)

$3,000

$2,000 

Pro-ration factor for private hospitals (this includes day surgery)

35%

25%

*Bonus claim of $200 a day for first two days of hospitalisation.

Any downsides?

Once the recommendations come into effect and the COVID-19 subsidy is long gone, expect to pay annual premiums of $15 to $525 a year (depending on your age).

For future private hospital stays, there is a lower cap on claims due to the lowered pro-ration factor from 35% to 25%.

By Marissa Saini
Your friendly neighbourhood cat enthusiast who enjoys not being broke. Spend less, save more is the name of the game. Firm believer that being financially savvy is not about the destination, but the friends you make along the way.

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9 Things You Should Know About Your MediShield Life
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All The Insurance Terms And Lingo In Your Policy, Explained
Best Critical Illness Insurance Plans In Singapore (2020)

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