in
Are the MediShield Life Fund’s reserves necessary?
moh
The MediShield Life Fund has to be self-sustaining based on sound actuarial principles. Premiums collected have to cover potential current and future payouts, including amounts set aside to support future commitments. These commitments are largely made up by premium rebates that will be paid out in the future to make premiums more affordable for Singaporeans in old age. It also includes future claims for patients who have started on multi-year treatments such as dialysis and chemotherapy. In addition, reserves are also set aside to ensure that MediShield Life can continue to pay out claims should an unforeseen event occur, such as a sudden surge in claims due to disease outbreaks.
The reserves are computed by external professional actuaries in accordance with the Monetary Authority of Singapore requirements, and in line with industry standards.
This information provided here is sourced from the MOH website.
Related Questions
If the Fund already has significant reserves, why do we need to increase premiums for MediShield Life? (Even if there is a need to take care of future payouts for recurring claims, e.g., for dialysis, the dialysis patient will be paying premiums in future. Can’t these future premiums be used to fund the future payouts then?)
from MOHWhat do the reserves of the MediShield Life Fund support?
from MOHAre my premiums increasing because of the ageing population?
from MOHWhy did MediShield Life premiums have to increase in 2021 especially during the economic downturn?
from CPF
Can’t find what you’re looking for?