Singapore’s Ministry of Health shares how changes to the MediShield Life deductibles will impact inpatient and outpatient bills

Over the next review cycle, the increase in premiums will amount to S$1.8bn and changes to the deductibles will reduce MediShield Life payouts by S$0.6bn.  

Earlier in October this year, the Singapore government accepted the MediShield Life Council’s recommendations for the MediShield Life 2024 review, which will be implemented progressively from April 2025, and will include enhancing the MediShield Life scheme to better protect Singaporeans against major health episodes that result in large medical bills, as well as an increase of premiums, with the total premium increase will amount to S$1.8bn over the next review cycle of three years.  

In line with the enhancements, the Ministry of Health (MOH) has addressed a parliamentary query on the following questions:  

• What is the estimated percentage of inpatient bills that will be impacted by the proposed increase in MediShield Life inpatient deductible by up to $1,500? 

• What is the estimated number of Singaporeans who are likely to face higher inpatient bills each year as a result? 

• What is the estimated percentage of outpatient bills that will be impacted by the new outpatient deductible of $500 per year? 

• What is the estimated number of Singaporeans who are likely to face higher outpatient bills each year as a result? 

The ministry highlighted the importance of having deductibles, saying that it serves as a feature of insurance, particularly, to sieve out the small bills, so that insurance claims can defray a large part of the big bills.  

Moreover, it helps to sieve out the unnecessary procedures or over-servicing, which can add up to more wastage, the ministry added.

“The MediShield Life Council which was tasked to review the system noted that our inpatient deductible has not been adjusted since 2015.  

“With rising medical bills, the deductible has therefore become less effective in sieving out smaller, more affordable bills which can be paid for by MediSave."

MOH also shared that Government’s approval, and without changes to the deductibles, the MediShield Life premiums will have to increase by an average of 31%, instead of 22% in the most recent round of review.  

Inpatient  

When addressing the number of inpatient bills where co-payment by patients will increase due to the increase in deductibles, the ministry said it is “difficult to estimate.” 

"It may be a fifth to a quarter of subsidised bills incurred by Singaporeans, depending on healthcare consumption pattern. But most will be lower-cost procedures that can be covered by MediSave, for which withdrawal limits will also be adjusted.  

"This means that subsidised patients should generally not have to pay more cash out-of-pocket due to the changes in deductibles."

Outpatient  

In terms of outpatient deductibles, the ministry highlighted that the Government introduced this initiative to future-proof the scheme as its coverage will expand to more outpatient treatments as well as home-based medical care.  

Furthermore, the outpatient deductible will be accompanied by a significant increase in claim limits, with dialysis as an example, from $1,100 to S1,750 monthly. 

“We expect the cumulative, annual increase in outpatient claim limits to more than offset the outpatient deductible for most treatments.  

"The net impact on each individual would differ, as it depends on their claim, ward class, premiums, and the subsidies and top-ups that they receive," MOH said.

MOH has stepped up to make these changes to improve assurance for Singaporeans over large subsidised bills as MediShield Life and MediSave, which will fully cover 90% of such bills, up from under the current 80%.  

Over the next review cycle, the increase in premiums will amount to S$1.8bn and changes to the deductibles will reduce MediShield Life payouts by S$0.6bn.  

"These additional outlays for policyholders will translate into higher payouts, especially for bigger hospital bills.  

"In addition, the Government will provide S$4.1bn in support measures including S$3.4bn in MediSave top-ups, which can also be used to help Singaporeans offset the impact of both premium and deductible increases," the ministry said.