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MediShield Life premiums will remain affordable: Gan Kim Yong

All Singaporeans can be assured that MediShield Life premiums will remain affordable and within their Medisave contributions, said Minister for Health Gan Kim Yong today, as he explained how the Government’s four-year transitional subsidy for the increased premiums would work.

All Singaporeans can be assured that MediShield Life premiums will remain affordable and within their Medisave contributions, said Minister for Health Gan Kim Yong today, as he explained how the Government’s four-year transitional subsidy for the increased premiums would work.

Speaking to media at the annual World Blood Donor Day - days after the MediShield Life Review Committee announced their recommendations on Thursday - Mr Gan said the recommendations committee understands greater benefits under MediShield Life will raise premiums, and has requested the government to provide subsidies to keep premiums affordable.

Explaining the rationale behind the four-year transitional subsidy, Mr Gan said: “The idea is that the subsidy will go from 80 per cent (of the increase in premiums), 60 per cent, 40 per cent, 20 per cent ... That’s why it’s spread over four years. (It’s) 80 per cent of the increase in premiums, not the premiums, because you are already paying some premiums now.” Details of the subsidy will be confirmed in the final report.

“I think it’s important for us to remember that because this is a very major shift, the Government is committed to providing sufficient help and support for Singaporeans so that we can make sure all Singaporeans can afford MediShield Life premiums,” said Mr Gan.

Permanent subsidies for the bottom two thirds of the population will also be implemented to ensure the government can “help as many as we can”, Mr Gan reassured, with an additional special subsidy scheme to be worked out for those in need of extra financial support.

“I think what is important for us is to make sure that the premiums overall is affordable and it remains within the Medisave contribution limits. And we hope to be able to help majority of Singaporean families to keep the net premium payable within their annual contribution,” he added.

Responding to queries about whether public healthcare facilities will be able to cope with the expected spike in demand, Mr Gan said: “We will continue to ensure that overall capacity is sufficient but what is also very important to us, even as we step up our healthcare finances support, is to encourage Singaporeans to continue to stay healthy and to make an informed decision with regards to their healthcare needs and healthcare services they consume.”

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