Can we use Medisave to pay for IPs and riders?
Medisave can be used to pay for premiums of Integrated Shield Plans (IPs), subject to Additional Withdrawal Limits. All IPs are required to have co-payment features such as deductibles and co-insurance, similar to MediShield Life. The co-payment can be paid for using Medisave, up to the prevailing withdrawal limits which are set to be sufficient for subsidised care.
Co-payment is an important feature in healthcare insurance to mitigate the risk of over-consumption and over-servicing which in turn could lead to escalation in healthcare costs and insurance premiums for all Singaporeans. Hence, riders that cover co-payments fully and allow policy holders to have zero co-payments are considered as separate products from IPs and their premiums cannot be paid using Medisave.
Medisave savings are intended to be sufficient for basic healthcare needs. We need to be careful about expanding the use of Medisave, as Singaporeans need to ensure that they have sufficient savings for healthcare expenses over their lifetime, especially after retirement. Supporting more uses will mean higher contribution rates are required.