In a media response to queries why are MediShield Life premiums collected much higher than its yearly payout, the Ministry of Health (MOH) said that Singaporeans must pay more as a form of “pre-funding”.
On Oct 31, MOH announced it collected S$1.736 billion in premiums but the payout is only S$614.3 million. While the general population were ignorant of the statistics, some professionals accuse MOH of ripping off Singaporean citizens to make a profit.
In response to the accusation, MOH said:
“To distribute premiums more evenly throughout a person’s lifetime, a proportion of an individual’s premium is also set aside for pre-funding of premiums in their senior years. The pre-funding proportion can go up to half of the premiums paid during the working ages.”
MOH also claimed that the present payout amount of S$614.3 million “does not accurately represent the adequacy of the insurance scheme.
The MediShield Life Fund now sits at S$3.4 billion. Overseas Singaporeans who do not enjoy the insurance have to pay the premiums through their CPF account nonetheless.