We refer to the article “MediShield Life review: Premium increase much lower than feared” (Straits Times, Jun 27).
Increase in premiums mostly absorbed by subsidies and top-ups?
It states that “The increase in premiums which people will have to pay for the better benefits under MediShield Life will not be more than $355 a year, with most of it absorbed by various government subsidies and top-ups.”
111 to 189% increase in premiums?
- The increase in premiums from 2019 compared to the current premiums, after the declining transitional subsidies range from 111% (from $9 to $19 monthly for the lower-income with household per capita income less than $1,100) to 189% (from $9 to $26 for the high income) for age 31 – 40.
For age 51 – 60, the increase range from 28% (from $29 to $37 for the lower-income) to 83% (from $29 to $53 for the high income).
So, how can an increase of up to 111% for the lower-income, and up to 189% for the higher income, be arguably called a “premium increase much lower than feared”?
Premiums start to increase from end-2016?
In respect of “in the first year of MediShield Life, starting end-2015, citizens will receive a subsidy of 80 per cent of the premium, followed by subsidies of 60, 40 and 20 per cent in each subsequent year”
- Does it mean that the gradual increase in premiums will actually start from the second year (end-2016) – which may be even worse than what the tables indicate for the increased premiums from 2019 only?
1.65m inactive CPF members have enough Medisave to pay?
As to “the committee also added that all premiums are expected to remain within Medisave contributions and inflows and there will be no additional cash outlay required”
- Since there are 1.65 million inactive CPF members out of the total 3.53 million CPF members – how many may not have sufficient money in their Medisave accounts to pay for their MediShield Life premiums?
With regards to the Government providing almost S$4 billion in subsidies and financial support over the next five years – does it mean that the average subsidy per year is about $800 million?
Govt still not spending any money on healthcare?
If so, does it mean that from a cashflow perspective – the Government may still not be spending any money on healthcare, as the total annual contributions to Medisave and the annual interest on the total Medisave balances, may continue to exceed Government healthcare expenditure and all withdrawals from Medisave by way of direct medical expenses, MediShield, Private Integrated Plans and ElderShield premiums, etc?
MediShield Life projections and surpluses?
Finally, can the actuarial study on MediShield Life be made public, so that we can see whether future projections of premiums to claims will continue to give yearly surpluses since the MediShield scheme started, to the tune of an estimated more than $1 billion to-date?
S Y Lee and Leong Sze Hian
P.S. Come to the Return Our CPF – MediShield Life protest on 12 July, 4 to 6 pm at Speakers’ Corner