Utilisation and Depletion of Medisave Monies

Ms Tin Pei Ling asked the Minister for Health (a) on a per year basis over the past five years (i) how many Singaporeans have passed away without depleting their Medisave monies; (ii) how many Singaporeans have utilised Medifund while they still have monies in their Medisave accounts; and (b) for the next five years, what is the forecasted trend for such situations given the increase in the CPF Minimum Sum.

Mr Gan Kim Yong: In determining the Medisave Minimum Sum, it is important to strike a careful balance to help Singaporeans keep sufficient Medisave balances to fund post-retirement healthcare costs, but not too much as to have excessive balances. The Medisave Minimum Sum (MMS) is sized to support the healthcare expenses and MediShield premiums of a typical Singaporean from age 55 up to life expectancy at age 85, taking into account expected inflation.

In 2011, 13,600 Singaporean CPF members aged 55 and above passed away. 30% of them had limited Medisave of $1,000 or less at demise; another 33% had Medisave balance of over $1,000 but $5,000 or less. Under current rules, any balance in the member's Medisave account constitutes part of the total CPF balances which can be bequeathed to loved ones on demise of the member.

MediFund and other financial assistance schemes are available to needy Singaporeans, even if they still have balances in their Medisave accounts. Each case is carefully considered to help Singaporeans pay for unexpectedly large hospital bills, without exhausting their Medisave. This helps them to keep their Medisave for their future needs.

For the next five years, the revision in MMS will help members to have more savings in their Medisave accounts at age 55 to cater to post-retirement healthcare needs. We will continue to review the MMS regularly to keep pace with healthcare costs.

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