SINGAPORE – The Health Minister today (July 8) sought Parliament’s endorsement of MediShield Life and said the shift to this universal public insurance scheme is “part of the broader changes in how we help Singaporeans pay for our healthcare”.

“Spending on health and aged care will continue to rise with our rapidly ageing population. Families are also getting smaller. What used to be shared among several siblings is now shared among fewer and none sometimes,” said Mr Gan Kim Yong, as he outlined the need for MediShield Life, which will provide Singaporeans and permanent residents with protection against large medical bills.

In his speech, Mr Gan said that Singapore’s national healthcare spending has risen and Government spending on healthcare has risen even faster. The Government’s healthcare spending will double to about S$8 billion this year from three years ago, he added.

Hence, there is a need for a healthcare system that is cost-effective, accessible to all and sustainable for current and future generations, he said.

MediShield Life, with its enhanced benefits and higher claim limits, will do more to “give Singaporeans greater assurance and peace of mind about healthcare costs, especially large and unexpected bills that may cause financial hardship to patients and their families”.

While the enhanced scheme will cost more in premiums, with younger Singaporeans set to pay almost three times as much in premiums as they do now, the Government has pledged S$4 billion over five years in subsidies to help Singaporeans transition to the new scheme. This is a “hefty” sum the Government is able to afford “because of our good governance, strong economy and sound public finances”, said Mr Gan.

The MediShield Life Review Committee had on June 27 released its full recommendations to the Government on the national insurance scheme including premiums and the expanded coverage, and the Ministry of Health had accepted all its recommendations on the design of the scheme.

The idea of MediShield Life “goes beyond healthcare and insurance”, said the minister, adding that it reflects a more inclusive society, and a more caring and progressive society.