Medisave Contribution Ceiling to be renamed; Medisave Minimum Sum to be scrapped

SINGAPORE — Changes to Medisave were announced by Health Minister Gan Kim Yong in his Ministry’s Committee of Supply debate today (March 11).

The Medisave Minimum Sum (currently S$43,500, which is the minimum amount needed in one’s Medisave account before he is able to withdraw other Central Provident Fund monies from age 55) will be removed from January next year.

At the same time, the Medisave Contribution Ceiling will be renamed the Basic Healthcare Sum. It will be set at S$49,800, which is 2.7 per cent higher than the current Medisave Contribution Ceiling of S$48,500 set last year. Beyond 2016, the Basic Healthcare Sum will be adjusted annually to keep pace with Medisave use by the elderly, said Mr Gan.

The Basic Healthcare Sum is designed to be enough for CPF members’ basic subsidized healthcare needs in old age. Amounts above this Sum will flow to their Special or Retirement Accounts to boost monthly payouts.

From 2016, the Basic Healthcare Sum for each cohort of Singaporeans will be fixed when they turn 65 – unlike now, where annual Medisave Minimum Sum adjustments are applied to everyone. The change aims to allow CPF members more certainty on the amount of Medisave they should keep retirement healthcare needs, said Mr Gan.

To increase flexibility for use of Medisave, four more conditions – epilepsy, ostepporosis, psoriasis and rheumatoid arthritis – will be covered under Community Health Assist Scheme and Medisave use from June this year. This brings the total number of conditions under the Chronic Disease Management Programme to 19.