How MediShield Life Changes Will Affect Your Healthcare Costs

This post was originally posted on Planner Bee.

The Singapore government has accepted recommendations from the MediShield Life Council to enhance the MediShield Life scheme. These changes aim to provide better coverage and help manage rising healthcare costs. The goal is to ensure Singaporeans and Permanent Residents have adequate protection against large medical bills.

Here’s a look at what’s changing and how it may affect your premiums and benefits.

Why are these changes necessary?

MediShield Life was originally designed to cover 9 in 10 subsidised bills at public healthcare institutions. However, with rising medical costs, its coverage has dropped to just under 8 in 10 bills. The upcoming changes aim to bring it back to its original level.

These changes also help Singaporeans and Permanent Residents manage increasing healthcare costs. As medical treatments and hospitalisation become more expensive, higher claim limits are needed to maintain adequate coverage. By expanding coverage and raising claim limits, MediShield Life provides better financial protection for those facing large medical bills.

What are the changes to MediShield Life?

From April 2025, MediShield Life will be updated gradually to offer better protection against high medical costs. The changes also aim to improve access to new treatment options. Here are some key updates:

**1.

Increased claim limits**

One of the most significant changes is the increase in claim limits for inpatient and day surgeries. For example:

• The daily claim limit for a standard ward stay will rise from S$1,000 to S$1,630.
• The claim limit for intensive care will more than double, increasing from S$2,200 to S$5,140.

The annual claim limit will be raised from S$150,000 to S$200,000, offering greater financial security for large medical expenses.

2. Improved outpatient coverage

Outpatient care will see key upgrades. For instance, the claim limit for kidney dialysis will increase from S$1,100 to S$1,750 per month, easing the financial burden for patients who rely on this treatment.

New outpatient and home-based treatments will also be covered, such as repetitive Transcranial Magnetic Stimulation (rTMS) for depression.

3. Greater coverage for high-cost treatments

More high-cost treatments will now be covered, making essential care more affordable and accessible. This includes:

• Cell, Tissue, and Gene Therapy Products (CTGTPs): Starting October 2025, MediShield Life will cover these treatments, which have shown promise in treating cancers and serious diseases. Initially, two-thirds of subsidised patients will benefit.
• High-cost drugs: Coverage will extend to clinically proven and cost-effective medications for blood conditions and childhood-onset conditions.

4. Updates to deductibles and co-insurance

To balance premium costs and improve affordability for larger bills, several changes will be introduced:

• Inpatient deductible: This will increase by up to S$1,500 in two phases.
• Outpatient deductible: A new S$500 deductible will be applied to outpatient treatments.
• Co-insurance: Instead of a flat 10%, the rate will shift to a tiered structure ranging from 3% to 10%, similar to inpatient billing.
• MediSave withdrawal limits: Adjustments will allow MediSave to be used for both co-insurance and the revised deductible.

Treatments currently covered under MediShield Life

Source: Ministry of Health

New treatments that will be covered under MediShield Life

Source: Ministry of Health

5. Changes to premiums

With the introduction of new benefits, premiums will increase. The rise will be up to 35%, with an average increase of around 22% per person. These adjustments will take effect from 1 April 2025, upon your policy renewal or new sign-up.

To ease the transition, the changes will be phased in over three years, with S$4.1 billion in government support. Most Singaporeans, especially those with lower MediSave balances, will receive additional MediSave top-ups.

For lower- and middle-income older Singaporeans, premium subsidies of up to 60% will help reduce costs. This support package aims to manage the overall increase in MediShield Life premiums over the next three years.

If you still face financial difficulties despite these measures, you can apply for additional financial assistance.

6. Updates to pro-ration factors for private bills

The pro-ration factors for private unsubsidised bills are being revised to ensure that subsidies for public hospital care are not used to offset private hospital bills.

In other words, if you opt for a higher-class ward (above B2/C) and only have MediShield Life, you will receive less coverage than before, resulting in higher out-of-pocket expenses.

MediShield Life is designed to cover B2/C class ward costs, so its coverage for private hospital stays or higher-class wards is limited. If you prefer broader coverage, consider getting an Integrated Shield Plan (IP). An IP can help cover treatment in private hospitals and public hospital class A or B1 wards.

Pro tip: Compare among the seven private insurers offering IPs to find the best fit for your healthcare needs.

Planning for your healthcare needs

With rising medical costs and evolving treatments, these changes aim to improve financial protection. However, it’s now more important than ever to manage your healthcare expenses wisely. Reviewing your insurance and choosing the right ward class can help you avoid high out-of-pocket costs.

If you have any questions about the MediShield Life updates, feel free to reach out to us at [email protected]. We’re here to help you with your financial planning and healthcare coverage.

Read more: Health Insurance in Singapore: All You Need To Know