Premiums and Claims under MediShield Basic

Mr Gerald Giam Yean Song asked the Minister for Health (a) what was the total MediShield Basic premium paid each year in the past 10 years; (b) what was the total amount in claims paid out for MediShield Basic in each of those years; and (c) what was the number of patients with approved claims in each of those years.

Mr Gan Kim Yong: Between 2001 and 2010, the amount of claims paid out by MediShield increased by 4.4 times, while the amount of premiums collected increased by 4 times. During the decade, various enhancements were made to MediShield to benefit Singaporeans, and premiums were increased in tandem to support the enhancements.

The following table shows the premiums collected, claims paid and required changes to reserves 6 to fund future MediShield liabilities for the period from 2001 to 2010.

Page: 648

Table 1: MediShield Premiums and Claims (2001 to 2010)

MediShield operates on a not-for-profit basis and premiums are actuarially calculated to cover all liabilities for current and future years. Besides funding current claims, a portion of MediShield premiums is set aside as reserves in line with the Monetary Authority of Singapore (MAS)'s Risk-based Capital Framework.

Beyond the reserves, MediShield is also required to set aside a certain sum of capital, to meet MAS's risk requirements and keep the Fund solvent in case of adverse risks.

The Ministry will continually improve MediShield over time to help Singaporeans meet their healthcare needs. Premiums will be kept affordable and yet ensure the fund remains solvent.