Singapore Healthcare Financing Flashcards

What are the '3Ms' of Singapore's healthcare financing framework?

Answer: MediShield Life, MediFund, and Medisave

Singapore's healthcare financing is built on three pillars — MediShield Life (catastrophic illness insurance), Medisave (individual savings for medical expenses), and Medifund (safety net for those who cannot afford care despite the other two).

What is Medisave and who is required to contribute to it?

Answer: A mandatory national medical savings scheme under CPF where employed Singaporeans and PRs contribute a portion of their salary for medical expenses

Medisave is a mandatory individual medical savings account under the Central Provident Fund (CPF) system. All employed Singaporeans and Permanent Residents contribute a portion of their monthly salary, building up savings for hospitalisation and approved medical expenses.

What is the primary purpose of MediShield Life in Singapore?

Answer: To provide basic catastrophic health insurance coverage for all Singaporeans and PRs for large hospital bills and expensive outpatient treatments

MediShield Life provides basic catastrophic health insurance for all Singapore Citizens and Permanent Residents, covering large hospital bills and costly outpatient treatments, with premiums payable from Medisave.

What is the MediShield Life deductible and why does it exist?

Answer: The amount the insured must pay before MediShield Life benefits kick in, designed to discourage over-utilization of healthcare

The MediShield Life deductible is the initial amount the insured must bear before MediShield Life benefits apply. It helps discourage over-utilization of healthcare services and keeps premiums affordable for the basic scheme.

What happens to MediShield Life coverage when a Singapore Citizen emigrates permanently?

Answer: Coverage terminates when the individual renounces Singapore citizenship or ceases to be a PR, as MediShield Life is available only to citizens and PRs

MediShield Life is available exclusively to Singapore Citizens and Permanent Residents. Upon renouncing citizenship or losing PR status, MediShield Life coverage terminates — it is not portable internationally.

What is 'co-insurance' under MediShield Life and what percentage does the insured typically bear?

Answer: The percentage of the bill above the deductible that the insured must pay, typically 10% for bills in lower ranges, reducing as bills increase

Co-insurance under MediShield Life requires the insured to pay a percentage of the claimable amount above the deductible. The co-insurance rate is 10% for the first S$5,000 of claimable amount (after deductible), reducing for higher amounts.