Can the Government allow us to use more of our Medisave to pay for our Integrated Shield Plan (IP) premiums? Why aren’t withdrawal limits sized such that IP policyholders do not experience cash outlay for their IP premiums?

Medisave is designed to help with basic healthcare expenses, especially after retirement. Medisave contribution rates and withdrawal limits are set in line with this principle. The previous Medisave withdrawal limits for insurance premiums were set to be sufficient for the basic MediShield component, to prevent depletion of funds of old-age use. Hence, those who wish to purchase Integrated Shield Plans (IPs) may have to co-pay part of the premium in cash.

MediShield Life premiums will continue to be fully payable by Medisave, while there will be a limit (the Additional Withdrawal Limit) set on the additional private insurance coverage to ensure Medisave adequacy is maintained. This is no different from the previous withdrawal limits set, those who wish to purchase IPs may have to co-pay part of the additional private insurance coverage premium in cash.

This information provided here is sourced from the MOH website.