Premiums could increase by as much as 35%, with hikes being phased over three years, from April 2025 to March 2028.
By the end of this period, the average increase per policyholder is expected to be around 22%. A one-off S$600 million release from the MediShield Life Fund will be used to cap the premium increase at 35%, and the increases will be phased evenly.
Key MediShield Life Enhancements
The higher premiums will fund several improvements to the scheme. Among the most notable changes is an increase in the policy year claim limit from S$150,000 to S$200,000.
This adjustment provides greater assurance for patients with exceptionally large bills, particularly those requiring extended hospital stays. Additionally, daily claim limits for inpatient treatments will be raised.
For example, the claim limit for the first two days of a hospital stay will increase from S$1,000 to S$1,630, while limits for Intensive Care Unit (ICU) stays will more than double, rising from S$2,200 to S$5,140.
Outpatient care is also a focus of the reforms. The claim limits for treatments such as kidney dialysis will rise from S$1,100 to S$1,750 per month. In addition, new outpatient treatments, including home-based care and therapies such as repetitive Transcranial Magnetic Stimulation for depression, will be covered.
A new outpatient deductible of S$500 per year will be introduced on 1 January 2026, and co-insurance rates for outpatient treatments will shift from a flat 10% to a tiered structure ranging from 3% to 10%, depending on the size of the bill.
These changes aim to keep coverage focused on larger, more expensive bills, helping to moderate the extent of premium growth.
Expanded Coverage for High-Cost Treatments
MediShield Life will also begin covering high-cost treatments that are both clinically effective and cost-effective. This includes Cell, Tissue, and Gene Therapy Products (CTGTPs) for the treatment of cancers and other serious conditions.
Starting in October 2025, the government will extend MediShield Life and MediSave coverage to CTGTPs on the Ministry of Health’s approved list. The coverage limits will be sized to fully support two-thirds of subsidised patients, helping to make these cutting-edge therapies more accessible.
In addition, high-cost drugs for blood conditions and childhood-onset diseases will now be covered under the scheme. This expansion aims to improve affordability for Singaporeans needing expensive, life-saving treatments.
Premium Adjustments and Support Measures
The total premium increases over the next review cycle of three years will amount to S$1.8 billion, largely driven by the higher claims limits and expanded coverage. Older Singaporeans will experience larger premium increases, with adjustments reflecting the growing costs of healthcare.
To mitigate the impact of these increases, the government will provide an additional S$4.1 billion in support over the next three years. This support package includes S$3.4 billion in MediSave top-ups and S$700 million in premium subsidies. For the vast majority of Singaporeans—more than nine in ten—the combination of these top-ups and subsidies will more than offset the premium increases.
Premium subsidies will be enhanced by five to ten percentage points for lower- and middle-income Singaporeans in older age groups, allowing them to receive subsidies of up to 60%, up from the current cap of 50%.
The government will also provide MediSave top-ups for various groups, including an increase of S$300 in annual top-ups for the Pioneer Generation, bringing the maximum annual top-up to S$1,200.
Other one-time bonuses and top-ups will be provided as part of the Majulah Package. Singaporeans born in 1973 or earlier will receive a S$1,500 MediSave Bonus in December 2024, which has been enhanced by S$500.
Similarly, seniors from the Merdeka Generation and younger will receive an additional S$500 MediSave Bonus in 2025, aimed at helping those with lower balances cover rising premiums. For newborns, the MediSave grant will increase from S$4,000 to S$5,000 from April 2025, ensuring their premiums are fully covered until age 21.
Healthier SG: Incentives for Leading a Healthy Lifestyle
In support of the Healthier SG initiative, policyholders aged 40 and above will be able to redeem MediShield Life premium discounts via the Health Promotion Board’s Healthy 365 app.
Participants can earn Healthpoints by engaging in healthy activities, which can then be converted into premium discounts. For instance, an individual who engages in 30 minutes of moderate physical activity daily could redeem up to S$80 in premium discounts. The programme will start in the third quarter of 2025 as a three-year pilot.
The government will review the pilot’s outcomes before deciding whether to make it a permanent feature of MediShield Life.
Adjustments to Deductibles and Withdrawal Limits
The government will also adjust MediSave withdrawal limits so that patients can use MediSave to cover both the co-insurance and the revised deductibles.
This adjustment will help to alleviate the financial burden on patients as the first phase of the inpatient deductible increase is implemented in April 2025. The outpatient deductible will take effect on 1 January 2026, with the second phase of inpatient deductible increases following in April 2027.
Looking Ahead: The Future of MediShield Life
The changes to MediShield Life are designed to restore the scheme’s original mandate of fully covering nine in ten subsidised bills in public healthcare institutions.
With the growing shift in healthcare delivery towards outpatient, community, and home settings, as well as the rising costs of medical treatments, the council’s recommendations ensure that MediShield Life remains sustainable and continues to offer meaningful protection for Singaporeans.
As noted by the MediShield Life Council, these updates are essential to keep the scheme effective in the face of rising healthcare costs and evolving medical technology.
The government has assured that no one will be denied coverage due to an inability to pay.
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