National Day Rally 2013: MediShield premiums, Medisave rates to go up on broader coverage, says PM Lee

The government-designed Medishield will be expanded to cover all Singaporeans for the whole of their lives, but premiums will then have to go up, said Prime Minister Lee Hsien Loong in his National Day Rally speech on Sunday.

“We will improve healthcare financing to give all Singaporeans more peace of mind,” Lee said in his speech delivered at ITE College Central.

To be renamed MediShield Life, the basic medical insurance scheme will cover Singaporeans aged above 90-years-old as they were not covered by MediShield before, Lee announced.

It will also be made universal, covering all Singaporeans, including the elderly and those with pre-existing illnesses. There will be no opting out, he said.

MediShield Life will give protection for very large bills so that patients will pay less out of pocket, he added.

The prime minister pointed out, though, that, as the benefits and coverage would be better, MediShield Life premiums “will be higher”.

He assured, however, that the government would subsidise premiums for those who would not be able to afford them.

The Ministry of Health will be conducting public consultation exercises before deciding on the details of the revamped medical insurance scheme.

Meanwhile, the prime minister also said the government will spend more on healthcare year by year.

He reminded the public though that “each of us must also save enough to pay for the remaining share”, and, as such, contribution rates to the national medical savings scheme, MediSave, must go up.

Government “will increase contribution rates over time, as and when economic conditions permit,” he said.

The government will also enhance the Community Health Assist Scheme (CHAS) by removing the floor age of 40. This will allow younger Singaporeans to be covered by the medical and dental programme.