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Are the MediShield Life Fund’s reserves necessary?



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.

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