Impact of Healthcare Deductibles on MediSave Balance for Retirees Without Regular Contributions in Meeting Future Medical Expenses

Assoc Prof Jamus Jerome Lim asked the Coordinating Minister for Social Policies and Minister for Health whether the Ministry has considered the impact of healthcare deductibles on retirees who no longer make regular MediSave contributions, given that such deductibles may progressively deplete their MediSave balances and reduce their ability to meet future medical expenses.

Mr Ong Ye Kung: Deductibles are a key feature of health insurance, as they sieve out smaller bills, instil discipline in healthcare consumption and focus coverage on larger bills. This feature preserves the objective of health insurance, which is to protect people against unexpected large hospital bills. Without deductibles, premiums every year would be much higher, which may deplete MediSave more than if there were deductibles. Incorporating deductibles into health insurance policies is the more optimal way to keep healthcare affordable overall.

To support seniors, we boost their MediSave balances through initiatives, such as MediSave top-ups, premium subsidies for lower-income Singaporeans and the Matched MediSave Scheme for eligible Singaporeans with lower MediSave balances.

Patients who still face difficulties with their subsidised healthcare bills may approach medical social workers for further financial assistance, including MediFund.