Gerald Giam: MediShield Life bill changes must not burden those who rely on the scheme most

SINGAPORE: On 11 November, Workers’ Party Member of Parliament Gerald Giam raised concerns during the debate on the MediShield Life Scheme (Amendment) Bill, focusing particularly on the financial impact on low-income and elderly households. The MP for Aljunied GRC urged the government to reconsider using the Annual Value (AV) of properties as a means-testing criterion for MediShield Life premium subsidies, particularly for retirees and low-income households. He suggested that individuals with AVs above S$25,000 should still be allowed to apply for subsidies, proposing a more holistic and transparent assessment based on individual circumstances. This approach, he argued, would enable the scheme to better target subsidies toward those who truly lack the cash flow to meet their healthcare needs. During the debate on the bill, Mr Giam emphasised that while the bill seeks to improve the MediShield Life framework, the changes must not impose unnecessary burdens on those who rely on the scheme the most.

Giam calls for clarity on premium adjustments and ministerial discretion in medical coverage

Giam raised concerns about the flexibility granted to the Minister in adjusting premiums, fearing that frequent changes could disrupt policyholders’ ability to plan their finances. He called for clarity on whether a regular schedule for premium adjustments would be established and how much notice would be given to policyholders. Giam also questioned the potential impact of granting the Minister discretion in approving eligible medical institutions and treatments. He expressed concerns that this could limit access to necessary care and asked if traditional medicine practices, such as Traditional Chinese Medicine (TCM), might be considered for coverage. He further expressed concern about the broadening of penalties for providing false or misleading information in declarations. He emphasised that vulnerable groups, such as the elderly or less tech-savvy individuals, could unintentionally make mistakes and called for provisions to allow rectification of minor errors.

MOS Rahayu highlights raised AV threshold to expand subsidy eligibility for lower-value private properties

In response to Mr Giam’s inquiry about how lower-income individuals living in high-AV properties are supported, Ms Rahayu Mahzam, Minister of State for Health, explained that individuals in such situations receive lower means-tested premium subsidies due to their higher AV properties. She clarified that the AV system aims to assess an individual's means more accurately, though it is not perfect, balancing simplicity with precision in subsidy assessments. Ms Rahayu noted that the government periodically reviews the eligibility criteria to ensure that those with greater needs continue to receive support. She highlighted that the AV threshold was recently raised, enabling those living in lower-value private properties to qualify for subsidies. For those facing exceptional circumstances, she assured that appeals for additional assistance could be made and would be considered on a case-by-case basis. Responding to concerns about the impact of deductible changes on lower-income patients, Mdm Rahayu provided assurance that Singaporeans who struggle to afford their bills after subsidies, MediSave, and MediShield Life could apply for financial assistance through schemes like MediFund support. In addressing Mr Giam’s concerns about policyholders with complex financial situations struggling to pay premiums, Rahayu assured that the intent of the recent amendments was to create a more targeted approach to premium enforcement.

Giam seeks clarification on MediShield Life coverage loss for policyholders missing premium payments

Giam further sought clarification from MOS Rahayu, who had previously assured that no one would lose MediShield Life coverage due to an inability to pay premiums. He asked whether policyholders who miss payments due to ineligibility for premium support, missed reminders, or other issues could lose coverage. In response, Rahayu confirmed that the government makes every effort to ensure individuals do not lose coverage due to non-payment, but acknowledged that a small percentage (1%) of defaulters could not be reached for premium recovery. The system is designed to identify individuals who are unable to pay due to financial hardship and ensure they receive support through Additional Premium Support (APS) and other safety nets. However, she emphasised that the aim is to assist those facing genuine difficulties while addressing cases where individuals fail to comply.

MediShield Life coverage to expand with new outpatient and home care benefits

On Monday, the Parliament passed the MediShield Life Scheme (Amendment) Bill, to include new models of care beyond traditional healthcare premises. This development follows recommendations from the MediShield Life Council aimed at strengthening protections for Singaporeans against large medical bills and providing greater access to new types of treatments. The Bill, which seeks to amend the MediShield Life Scheme, proposes coverage for a broader range of outpatient treatments, including mental health services and community-based care, as well as home-care treatments. Additionally, the bill will raise claim limits, giving patients more financial support.