Younger Singaporeans to pay about three times more in Medishield Life premiums

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http://www.todayonline.com/singapore/medishield-life-panel-details-premiums-assures-affordability?singlepage=true

The MediShield Life Review Committee has revealed, in its final report, details of the increased premiums Singaporeans will have to pay under the Republic’s new mandatory national insurance scheme, with the committee assuring that premiums will be “affordable” with the help of government subsidies.

Younger Singaporeans are set to pay almost three times as much in premiums as they do now, in line with the committee’s recommendations to distribute premiums such that people pay more during their working age and premiums rise less in their old age.

This means a lower-middle-income Singaporean aged 31 to 40 who currently pays S$105 a year for MediShield will pay S$310 a year, before permanent and transitional subsidies to be provided by the Government. Older Singaporeans will see premiums rise by a smaller scale.

The permanent premium subsidies — available to two-thirds of Singapore households — will be available for both Singaporeans and permanent residents, with PRs to get 50 per cent of the subsidy rates for Singaporeans.

The premiums, payable by Medisave, are subject to further hikes but are also expected to remain unchanged for at least five years. Currently, they are reviewed every three to five years.

With the scheme now mandatory, the Government should consider “suitable” enforcement measures and penalties for those who “wilfully default” on premiums, the committee also said.