Changes to the current MediShield insurance scheme will take place end-2015, with the improved MediShield Life set to automatically cover all Singaporean Citizens and Permanent Residents.

Such a move would include the removal of a lifetime limit as well as higher daily and annual claims. The Ministry of Health (MOH) said that the government will spend $4 billion over the next five years on subsidies for MediShield Life.

What else do you need to know?

1. Covers everyone even with pre-existing conditions including cancer, stroke, heart disease or previous rejections by insurers

The Scheme will cover all with pre-existing conditions but pay 30% more premiums.

2. MediShield Life is for life

It applies to all Singaporeans and PRs, regardless of their age or financial situation.

3. Increase in benefits with MediShield paying more of your bill

There are increases in the limits on yearly and daily claims, with the lifetime claim limit removed.

4. Increase in premiums mostly absorbed by government subsidies and top-ups and payable by Medisave

There are permanent subsidies of 15-50% for two-thirds of Singaporeans. The additional 1 percentage point increase in Medisave will fully cover premium increases for most, with no cash outlay needed.

5. Additional financial assistance for those who cannot afford premiums even after subsidies

With these subsidies, low-income earners pay less than $3 more and high-income earners $6 more a month. After a four-year transition, any monthly increase will be less than $11 for low-income earners, and $30 for high-income earners.

Photo credit: Ministry of Health Facebook page.