Plans & Subsidies There are four main tiers of government subsidies that keep healthcare in Sin

Plans & Subsidies

There are four main tiers of government subsidies that keep healthcare in Singapore affordable. The first tier of protection is provided by heavy government subsidies of up to 80 percent of the total bill in acute public hospital wards, which all Singaporeans can access.

Medisave is the second tier of protection. Medisave is a compulsory individual medical savings account plan that allows virtually all Singaporeans to pay for their share of medical treatment without financial difficulty. Working Singaporeans and their employers contribute a part of the monthly wages into the account to save up for future medical needs. The account is portable across jobs and after retirement.

Medisave covers various hospital expenses, including:

• Daily ward charges;
• Doctor’s fees;
• In-patient charges for medical treatment, investigations, medicines, rehabilitative services, medical supplies, implants and prostheses introduced during surgery; and
• Surgical operations, including use of operating theaters.

The claim limits are as follows:

• Medical/surgical inpatient cases: $360 per day for daily hospital charges for patients admitted on or after May 1, 2007. This includes a maximum of $40 for doctor’s daily attendance fees;
• Approved day surgeries: Up to $240 per day for daily hospital charges for surgeries performed on or after May 1, 2007. This includes a maximum of $24 for doctor’s daily attendance fees; and
• Surgical operations (inpatient and same-day surgery): A fixed limit depending on the complexity of the operation and according to an approved list of procedures.

The third level of protection is provided by MediShield, a low-cost catastrophic medical insurance plan. This allows Singaporeans as a collective to effectively risk-pool the financial risks of major illnesses. MediShield operates on a co-payment and deductible system to avoid problems associated with first-dollar, comprehensive insurance. MediShield can cover up to 80 percent of large medical bills at the Class B2/C level (larger, shared, less-expensive rooms).

The fourth level of protection is ElderShield, a severe disability insurance. ElderShield also is available for subscription by Singaporeans to risk-pool against the financial risks of suffering a severe disability. ElderShield supplements allow policyholders to enhance the disability benefits coverage offered by the basic ElderShield product.

Finally, as an ultimate safety net, the government has established a medical endowment fund known as MediFund for needy Singaporean patients who cannot afford to pay their medical bills despite the heavy subsidies.

Many middle and higher income Singaporeans also have supplemented their basic coverage with integrated private insurance policies (Integrated Shield Plans) for treatment in the private sector. Singaporeans must subscribe to the basic MediShield product before they can purchase the add-on private Integrated Shield Plans. This industry structure preserves the national risk pool and guards against “cherry picking” of healthy lives by private insurers.