What are the premium recovery measures? Who will enforce premium payment?

Prior to premium recovery, premium notices and reminders will be sent to give policyholders sufficient time to make payment. Policyholders will also be informed of alternative payment methods (e.g. tapping on family support) and the availability of government assistance (i.e. Additional Premium Support) for those who qualify. 

However, for those with the means but who choose not to pay MediShield Life premiums, a strong set of measures will be taken to recover premiums. If left unchecked, premium defaults will translate into bad debts that will affect the sustainability of the MediShield Life Fund and could lead to higher premiums for all. The premium recovery measures, which take reference from income tax recovery measures, are:

(i)          Appointment of defaulter’s agents (such as the defaulter’s employers, banks and tenants) to recover the outstanding premiums

(ii)         Offsetting outstanding premiums against one-off Government surplus-sharing transfers (e.g. Growth Dividends)

(iii)       Recovery from the Central Provident Fund (CPF) monies that are  withdrawn in cash

(iv)       Imposition of travel restrictions in certain circumstances

(v)        Legal action to recover the arrears

Penalties will be imposed on those who do not pay. Those who persistently delay premium payment may also have to pay back the interest lost to the MediShield Life Fund. 

Appointed under the MediShield Life Scheme Act, the Inland Revenue Authority of Singapore (IRAS) and the CPF Board are the recovery bodies responsible for imposing premium recovery measures.

This information provided here is sourced from the MOH website.