Red Dot United calls for clarity and reforms on MediShield Life premium hikes

Red Dot United (RDU) issued a statement on Thursday, 28 November, voicing concerns over the planned increases in MediShield Life premiums.

The party urged the Ministry of Health (MOH) to clarify the rationale behind these hikes, which will rise by an average of 22% across policyholders, placing significant financial strain on citizens despite the MediShield Life Fund’s reserves designed to account for future claims.

The premium increases, set to be phased in from April 2025 to March 2028, will see some policyholders facing hikes of up to 35%.

These adjustments are coupled with sharp rises in deductibles, including a 66% increase for Class C ward deductibles for those aged 80 and below and a 75% increase for those above 80.

Concerns over sustainability and equity

In its statement, RDU questioned why long-time policyholders, who have consistently paid premiums to build the fund’s reserves, are now facing significant hikes.

These reserves are intended to support long-term claims, particularly for individuals with chronic conditions. The party called for clarity on whether the premium hikes align with the initial intent of creating a self-sustaining scheme.

RDU highlighted the disproportionate impact of these increases on middle-income families, who often do not qualify for substantial government subsidies.

Rising deductibles further compound financial burdens, as policyholders must now pay more out-of-pocket before receiving coverage.

RDU also criticised the use of property Annual Value (AV) as a criterion for subsidy eligibility, arguing that cash-poor retirees living in older private properties are unfairly excluded. The party called for an equitable subsidy framework that accounts for genuine financial need rather than property valuation.

Calls for transparency and accountability

In its statement, RDU emphasised the need for transparency in healthcare spending, expressing dissatisfaction with the MOH’s lack of clarity on projected government healthcare expenditure.

While National Health Expenditure (NHE) data includes public and private spending, it does not provide specific details on government spending for medical services.

Ravi Philemon, RDU’s secretary-general, remarked, “This triumph for humanity [living longer lives] must be matched by a healthcare system that gives people, especially seniors, peace of mind as they age with dignity, supported by sufficient and transparent government spending on healthcare.”

RDU called for the implementation of a Freedom of Information Act (FOIA) to enhance accountability.

They also proposed increasing government healthcare spending to 6% of GDP, in line with international benchmarks, to reduce reliance on out-of-pocket expenses and frequent premium hikes.

Proposals for reforms

To address rising premiums, RDU suggested several measures, including:

1. Targeting new costs toward new policyholders to protect long-term contributors from sudden hikes.
2. Publishing historical premium adjustments and justifications to enhance predictability and trust.
3. Regularly reviewing and adjusting claim caps to manage costs without requiring frequent premium increases.

Additionally, RDU recommended revising subsidy criteria to reflect income and financial circumstances rather than property valuation.

They also called for a fair appeal process for retirees who do not meet the current AV-based requirements but face genuine financial challenges.

Healthcare for all generations

RDU warned that continued premium increases risk depleting the Central Provident Fund (CPF) savings of many Singaporeans, threatening their ability to meet future needs and aspirations.

They stressed the importance of a balanced approach that ensures intergenerational fairness and protects both current and future policyholders.

The party concluded its statement by reaffirming its commitment to a healthcare system that places people at its core, advocating for policies that promote sustainability, inclusivity, and fairness for all Singaporeans.