The MediShield Life Fund is designed to be self-sustaining based on sound actuarial principles. Premiums are collected to cover current and future payouts, including amounts set aside to support future commitments. These commitments are largely made up of premium rebates that will be paid out in future to keep premiums affordable for Singaporeans in old age. They also include expected payouts for patients who have started on multi-year treatments (e.g. dialysis and chemotherapy), to provide them assurance that they will be covered for as long as they require their treatments.

The liabilities associated with these current and future claim commitments are computed by external actuarial experts in accordance with requirements set by the Monetary Authority of Singapore, and are in line with industry standards.