MediShield Life Premiums Collected Hit S$1.7 Billion, Gahmen Payouts Only 30 Percent of That

Posted on Dec 2 2016 - 6:07pm by Redwire Singapore

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According to the Ministry of Health, Medishield Premiums collected by the government have hit S$1.736 billion as of end Sept this year.

This sum, however, is 3 times higher than the payouts made by the government in the same period.

The Medishield Life fund retains all premiums that have not been paid out.

At the end of 2015, it had collected S$3.4 billion.

The MOH has justified its 30 percent payout rate so far, saying that the premiums collected for MediShield Life are meant to support claims made in the same year, and also those that recur and stretch into the future.

It said that the disparity between premiums collected and payouts is due to the need for a buffer.

Analysts say the government has possibly chosen to err on the side of caution and collect more in the initial years then needed in case worse-than-expected situations should arise.

 

 

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