MediShield Premiums Collected and Claims Paid in Last Five Fiscal Years

Ms Mary Liew asked the Minister for Health what is the amount of MediShield premiums collected and MediShield claims paid out in the last five fiscal years.

Mr Gan Kim Yong: Between 2008 and 2012, the amount of claims paid out by MediShield annually doubled, while the amount of premiums collected increased by about 40%. The claims paid out by MediShield are expected to further increase as the population ages and with the expansion of coverage to psychiatric, congenital and neonatal conditions from March 2013.

The following table shows the premiums collected, claims paid and required changes to reserves 10 to fund future MediShield liabilities for the period from 2008 to 2012.

As a not-for-profit and self-sustaining insurance scheme, MediShield premiums are actuarially calculated to cover all expected liabilities for current and future years, which include policyholders' claims and premium rebates to help policyholders with old-age premium affordability. A portion of the premiums collected is also set aside as reserves and capital, in line with the Monetary Authority of Singapore (MAS)'s Risk-Based Capital framework and risk requirements to keep the Fund solvent in case of adverse risks.

Note(s) to Question No(s) 15:

10 The insurance contract liabilities are determined based on the advice of the CPF Board's independent actuarial advisers, and in line with insurers' practice in Singapore.