The MediShield Life Review Committee said it will call on the Government to pay for most of the additional costs of covering those currently uninsured.
It has also recommended that MediShield Life should increase claim limits, remove the lifetime claim limit, and halve co-insurance rates.
MediShield Life will cover all Singaporeans regardless of age or pre-existing conditions, and will be launched next year.
The committee gave its second review update on Saturday, following focus group discussions with more than 800 people.
It proposed that daily claim limits for normal and Intensive Care Unit (ICU) wards be raised by 55 per cent. This will mean that an estimated 10,000 more Class B2 and Class C ward patients will pay less than $3,000 for inpatient bills.
In addition, it suggested that claim limits for outpatient cancer and radiotherapy treatment be raised. This would mean 1,500 more subsidised patients undergoing chemotherapy would have to pay less than $1,000 in a year.