Medisave withdrawal limits increased to pay for Integrated Shield Plans: MOH

Singaporeans above 40 years old can tap on more funds in their Medisave accounts – up to S$900 – to pay for Integrated Shield Plan (IP) premiums when MediShield Life rolls out at the end of the year, said the Ministry of Health (MOH) today, 9 July.

MediShield Life is the new compulsory national medical insurance offered by the government and will replace the existing MediShield at the end of 2015.

Called Additional Withdrawal Limits, the new limits are to help Singaporeans use Medisave to pay the additional premiums for the private insurance component of Medisave-approved IPs.

The IPs consist of two parts: MediShield Life for staying in Class B2 and C ward, and private insurance coverage for staying in Class B1 and A wards and private hospital.

The previous Medisave withdrawal limits were the same across all ages, but the new limits will see an increase ranging from S$250 (for those aged 41 to 70) to S$700 (for some aged 71 and above).

The withdrawal limit for Singaporeans aged 40 and below will remain unchanged at S$300.

It is not clear if the increase is meant to pay for riders or coverage of deductibles offered by IP providers, which had been some of the nagging concerns of the new MediShield Life scheme.

Costs of IPs offered by various private insurance providers have increased in tandem following the announcement of the premiums for Medishield Life.

Revised withdrawal limits in summary:

• Aged 40 and below – S$300 (no change from previous limit)
• Aged between 41 and 70 – S$600 (increase of S$250)
• Aged 71 and above – S$900 (increase of S$400 to S$700)

About Integrated Shield Plans (IPs):

IPs comprise two parts:

1. A MediShield portion run by the CPF Board.
2. An additional private insurance coverage portion run by private insurers, typically to cover Class A/B1 wards in public hospitals or private hospitals.

This means that if you have an IP, you are already covered by MediShield. The premiums you pay to your private insurer already includes the premiums for the MediShield portion. As MediShield is part of your IP, there is no duplicate coverage.