MediShield Premiums to Go Up on 1 December 2008

This post serve to notify you, that you better be prepared to take care of yourself than rely on your government to care for you in your older years. Thus, please put in efforts to ensure you are sufficiently covered. Please take your money seriously, invest and make sure your funds are sufficient when you retire. Here's the can of worms fellow Singaporeans:

1. Report on 27 Apr 2008
(source : http://www.channelnewsasia.com/stories/singaporelocalnews/view/343983/1/.html).
SINGAPORE: MediShield premiums will go up between a few dollars and S$40 a month from December 1, depending on age.

The Health Ministry (MOH) is raising the premiums so that it can increase the MediShield payouts to reduce the financial burden on Singaporeans with large Class B2 and Class C hospital bills.

The deductible stays the same for those under 80 – S$1,500 for Class B2 and S$1,000 for Class C. But it will be raised to S$3,000 for Class B2 and S$2,000 for Class C for those aged 81 to 85.

MOH will also raise the annual Medisave withdrawal limit to S$1,150 for policyholders aged above 80. For the rest, it stays at S$800.


2. Life Expectancy of Singaporeans
Refer to another source https://www.cia.gov/library/publications/the-world-factbook/geos/sn.html

Life expectancy at birth:
total population: 81.89 years
male: 79.29 years
female: 84.68 years (2008 est.)

Refer to the first Para, increase in MediShield claims/payouts are for those above 80 years old. This applies only to B2 and below class wards.

The life expectancy refers to those born in this current few years, not applying to those who are already born years ago and working. Our life expectancy is not those stated above, but shorter.


3. Current MediShield Premium
http://mycpf.cpf.gov.sg/CPF/Templates/SubPage_Template.aspx?NRMODE=Published&NRORIGINALURL=%2fMembers%2fGen-Info%2fFAQ%2fHealthCare%2fMSH%2ehtm&NRNODEGUID=%7b19A871A3-E1A4-4C7C-AD0E-42686AE7E9A5%7d&NRCACHEHINT=Guest#SEC4Q17

Table F:
Annual Premium Table Age Next Birthday Yearly Premium
30 and under - $30
31 - 40 - $40
41 - 50 - $80
51 - 60 - $160
61 - 65 - $225
66 - 70 - $265
71 - 73 - $335
74 - 75 - $375
# 76 - 78 - $420
# 79 - 80 - $510
# 81 - 83 - $600
# 84 - 85 - $705


4. The Cruel Fact, The Percentage of Increase
Let's look at figures. If premium is increased by $40/month, or $480/year for those above 80 years old, what is the percentage of increase?
a. Age 81 - 83 = $600/year. Increase by $480/year works out to 80% increase
b. Age 84 - 85 = $705/year. Increase by $480/year works out to 68% increase.
c. Age 86 onwards. Sorry, not covered.

As stated in CIA Fact Book, the median age is 38.4yrs old. Let's assume, the MediShield premium increase is $3/mth for this group. That works out to $36/year. The premium for this age group is $40/year. The increase is, 90%.

Reports are not being transparent by publishing the bigger picture, by percentage of increase. By saying, a few dollars a month, it sounds palatable.


5. What Next
With so much increase, first Goods & Services Tax, follow by Transportational Cost, now MediShield Premiums, what next?

We must make sure we do our own dues, to be sufficiently prepared for our older years.