Are my premiums increasing because of the ageing population?

MediShield Life premiums are actuarially priced by independent and external actuarial experts based on health risks and expected healthcare utilisation of each age group. Each age group’s payouts are broadly supported by their own premiums to ensure that MediShield Life remains sustainable even as our population ages.

Since its launch, MediShield Life has been providing more payouts and greater protection for more Singaporeans. Annual payouts have increased by close to 40% and the number of Singaporeans who have made claims has increased by about 30% between 2016 and 2019. For the scheme to continue to be able to provide these payouts to Singaporeans, premiums will have to increase. About two-third of the premium increases are due to the growth in utilisation and payout.

One-quarter of the premium increases is to support the recommendations to refresh and refine the claim limits to ensure that Singaporeans continue to be adequately covered for the vast majority of subsidised bills.

The remaining 8% of premium increases support new benefits including those which were previously implemented without any premium adjustment. This includes the extension of coverage to inpatient hospices and inpatient treatment of serious pregnancy complications.

This information provided here is sourced from the MOH website.