Did you know that your MediSave account is more than a national healthcare safety net? Understanding the ins and outs of your MediSave account can help you to fully utilise it and make the most out of your healthcare savings.
ARTICLE
MediSave: All you need to know about your healthcare savings
2023
9 min read
9 min read
What is MediSave and how do we contribute to it?
MediSave is Singapore's national healthcare savings scheme that ensures affordable healthcare for all Singapore Citizens and Singapore Permanent Residents (SPRs). You can use your MediSave savings to pay for your healthcare expenses, as well as those of your loved ones, which include your spouse, parents, grandparents, siblings, and children.
- MediSave contributions for salaried employees
If you are a Singaporean / SPR salaried employee, your contributions into MediSave are apportioned from your monthly Central Provident Fund (CPF) contributions. Under the CPF savings scheme, both you and your employer are obligated to contribute a percentage of your monthly wage into your CPF account. CPF contribution rates differ according to age of employee and are surmised by the table below:
CPF Contribution rates from 1 January 2023
(for monthly wages > $750)
| Employee's age (years) | By employer (% of wage) |
By employee (% of wage) |
Total (% of wage) |
|---|---|---|---|
| 55 & below | 17 | 20 | 37 |
| Above 55 to 60 | 14.5 | 15 | 29.5 |
| Above 60 to 65 | 11 | 9.5 | 20.5 |
| Above 65 to 70 | 8.5 | 7 | 15.5 |
| Above 70 | 7.5 | 5 | 12.5 |
Source: CPF
Your CPF contributions will be allocated into three accounts – Ordinary Account, MediSave Account, and Special Account, with contributions into MediSave ranging from 21% to 84% of the CPF contributions, depending on your age.
CPF Allocation Rates from 1 January 2023
Private Sector / Non-Pensionable Employees (Ministries, Statutory Bodies & Aided Schools)
*Approximated figures below
| Employee's Age (Years) | Ordinary Account (% of CPF contribution) |
Special Account (% of CPF contribution) |
MediSave Account (% of CPF contribution) |
|---|---|---|---|
| 35 & below | 62% | 16% | 21% |
| Above 35 – 45 | 57% | 19% | 24% |
| Above 45 – 50 | 51% | 22% | 27% |
| Above 50 – 55 | 41% | 31% | 28% |
| Above 55 – 60 | 41% | 24% | 35% |
| Above 60 – 65 | 17% | 32% | 51% |
| Above 65 – 70 | 6% | 26% | 68% |
| Above 70 | 8% | 8% | 84% |
Source: CPF
- MediSave contributions for self-employed individuals
If you are a self-employed Singaporean / SPR, you are not required to make monthly CPF contributions. However, you are required to declare your Net Trade Income (NTI) and make contributions to your MediSave under the Self-Employed Scheme if you earn an annual NTI of more than $6,000. Your MediSave contribution amount will vary according to your NTI and age. You can use the Self-Employed MediSave Contribution Calculator to calculate how much you will need to contribute to your MediSave account.
Starting from 1 January 2023, the Basic Healthcare Sum (BHS) for CPF members below 65 years old has been adjusted from S$66,000 to S$68,500. The BHS is the estimated savings required to cover your basic subsidised healthcare needs in old age. In other words, BHS is also the maximum amount of savings you can keep in your MediSave account.
With the revised MediSave limit for 2023, CPF members can now enjoy more savings in their MediSave accounts, providing you with greater financial flexibility and wider range of healthcare expenses that can be covered with their MediSave savings.
What can MediSave be used for?
Here are some ways to use your MediSave to cover healthcare expenses, along with the withdrawal limits for each:
- Hospitalisation expensesOne of the most common uses of MediSave is hospitalisation expenses. You can use your MediSave savings for the following:
- Surgery (ranges from $250 to $7550, depending on the complexity of the surgery)
- Hospitalisation (up to $550 per day for the first two days of hospitalisation, and $400 per day thereafter)
- Day surgery (up to $300 per day)
- Outpatient treatmentsContrary to common misconception, you can use your MediSave savings for more than just hospitalisation expenses. Under the MediSave500/700 scheme, you can claim up to $700 for the following expenses:
- Chronic disease treatments
- Mental health conditions
- Vaccinations for children and adults
- Health screenings e.g., Mammograms for women aged above 50 and selected new-born screening tests.
- Homecare expenses for homebound patients e.g., home-visits medical consultation fees and blood tests that are conducted at home.
Other ways that you can use your MediSave account include:- Outpatient scans e.g., CT and MRI scans (up to $300 per year per patient).
- Repeated cancer treatments (up to $600 or $1,200 per month per patient, depending on the cancer drug treatment)
- Renal dialysis (up to $400 a month per patient)
- Outpatient medical treatments if you are 60-years and above (up to $300 per annum per patient).
- Assisted conception procedures (up to $15,000 per patient)
- RehabilitationRehabilitation is an integral part of the recovery process. You can also use your MediSave to help cover the costs of rehabilitation as detailed below:
- Hospitalisation at an approved community hospital (for $250 per day, up to $5,000 per year)
- Hospitalisation at an approved convalescent hospital (for $50 per day, up to $3,000 per year)
- Outpatient treatment at a day rehabilitation centre (for $25 per day per rehabilitation service, up to $1,500 per year)
- Outpatient treatment at an approved day hospital (for $150 per day, up to $3,000 per year)
- Palliative careMediSave can also be used to cover the costs of palliative care, providing much-needed financial support for individuals and their families during this difficult time. You can claim up to $2,500 per lifetime, per patient, for home palliative care or day hospice care.Patients who have been diagnosed with terminal cancer, end-stage organ failure, or advanced dementia can utilise their own MediSave accounts fully to cover the associated costs of hospice or adult home palliative care.
- Insurance premiums for MediShield LifeMediShield Life is a basic healthcare insurance scheme that is designed to give lifelong protection to all Singaporeans / SPRs against large hospital bills and costly medical treatments. The benefits offered by MediShield Life are intended to cover the cost of subsidised bills incurred in Class B2/C wards, as well as subsidised outpatient treatments and day surgeries at public hospitals.With MediShield Life, you can claim up to $150,000 per annum, with no lifetime limit.
- Insurance premiums for Integrated Shield Plans (IP)While MediShield Life provides basic healthcare coverage for Singaporeans and SPRs, there are certain healthcare expenses that may not be fully covered by the scheme. For example, if you opt to stay in an A/B1-type ward or a private hospital, the coverage provided by MediShield Life will only account for a fraction of the total bill. You will be required to supplement the remaining amount either through your MediSave account or with cash.An IP provides supplementary coverage that combines both MediShield Life with an additional insurance coverage component. They serve to plug the gaps of MediShield Life and give individuals greater flexibility and more comprehensive coverage over their healthcare needs. For example, AIA HealthShield Gold Max provides you with access to better treatments and flexibility over your choice of wards in private and public hospitals. In addition, you can enjoy up to 13 months for pre- and post-hospitalisation coverage, as well as access to Teladoc Health services for personalised medical support and guidance from diagnosis, treatment, through to recovery.The good news is that while IPs come with higher premiums, you can use your MediSave to pay for them, with full withdrawal for the MediShield Life component, and within withdrawal limits for the private insurance component. The MediSave withdrawal limits for insurance are:
- $300 per year for individuals who are 40 years old and below on their next birthday
- $600 per year for those who are 41 to 70 years old on their next birthday
- $900 per year for those who are 71 years old and above on their next birthday.
From hospitalisation costs to palliative care and rehabilitation, MediSave provides coverage for a wide range of medical expenses. By maximising the benefits of MediSave and further enhancing your coverage with IPs, you will be able to ensure financial stability in times of medical emergencies and better protect yourself and your loved ones.
References
1. MOH: MediSave – Ministry of Health Singapore
2. Changes to CPF in 2023 and how it benefits you – Central Provident Fund Board
3. Consider whether you need supplementary coverage for healthcare – Central Provident Fund Board
5. Using MediSave for outpatient treatments – Central Provident Fund Board
6. Using your MediSave savings for yourself and loved ones – Central Provident Fund Board
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