The details are still being finalised and the Ministry of Health will try to cap the maximum hike at around $10 per month. The quantum will also differ with the age of policyholders. Younger policyholders will experience a much lower premium increase. The ministry will share such details publicly when the actuarial computations are finalised.

Mr Seah further perceived the MediShield scheme to have a 'huge surplus every year and sitting on a massive net asset'. However, such 'surplus' is not profit. MediShield is a long-term medical insurance policy. When

MediShield takes on a policyholder, it commits to cover the policyholder for hospitalisation expenses, the bulk of which is expected to crop up in the future when the policyholder ages. MediShield reserves are for future obligations and contingencies.

Any improvement to the current MediShield scheme will therefore require some premium adjustments, but we will ensure they remain affordable for all Singaporeans.

Karen Tan (Ms)
Director
Corporate Communications
Ministry of Health