Essential Medisave facts every Singaporean should know
What is Medisave?
Medisave is one of the 3 accounts of our Central Provident Fund (CPF), other than the Ordinary Account (OA), and the Special Account (SA).
According to the Ministry of Health, Medisave is a national healthcare savings initiative which helps Singaporeans save a part of their income into their Medisave Accounts to prepare them for future personal or immediate family’s hospitalisation, day surgery and certain outpatient expenses.
We can never preempt when we might require medical attention that may incur costly medical bills. Hence, the Singapore government made it mandatory in 1984 with the introduction of the Medisave scheme for Singaporeans to save a portion of their income to tackle their heavy medical expenses should the need arise.
How much of my monthly income goes into Medisave?
Medisave contribution rates are only applicable for Singaporeans earning >=$1,500 per month. The table below shows the percentage contribution of an individual’s monthly wage into Medisave account.
Basic Healthcare sum is the estimated amount of savings required for a person’s basic subsidised healthcare needs in old age. It is set at $52,000 in 2017 for all CPF holders. This sum will be adjusted in time for each cohort with increased Life expectancy of Singaporeans as well as healthcare costs.
Each cohort’s BHS will be fixed from age 65 onwards, and this amount will remain fixed for the rest of their lives.
When can we use Medisave?
A Medisave account holder may use his/her account to pay for the hospitalisation and certain outpatient expenses incurred at any hospital in Singapore. He/she may use it for personal or immediate family members’ use.
Health preventive measures
With the Medisave400 scheme, Ministry of Health encourages Singaporeans to take up preventive measures for their health such as early detection and vaccination. Hence, people can use Medisave to subsidise health screening exams such as screening Mammograms and Colonoscopies, Children’s vaccination such as Pneumococcal and Hepatitis B vaccination, and certain newborn health check ups. For more information on Medisave’s use for health screening and specific hospitals available for screening, you can find out more here.
In Singapore, the leading cause of death is due to chronic diseases. However, a lot of chronic illnesses can be mitigated with early detection and treatment. Hence, Singapore’s government launched Medisave’s use for Chronic Disease Management Programme (CDMP) in October of 2006 to help pay for outpatient out of pocket costs. A total of 19 chronic conditions are eligible under the CDMP.
As long as you of your loved one suffers from one of the chronic disease as mentioned above, Medisave will be available to cover 85% of your total medical bill. Hence, only 15% of the total bill needs to be co-paid out of pocket by the patient.
Therefore, if your medical bill is $1,000, you only need to pay $150. The rest will be covered by Medisave!
Annual Withdrawal limit:
However, do take note that Annual outpatient withdrawal limit is limited to $400 per Medisave Account. Patients are able to use the Medisave of their immediate family members, with a maximum of 10 accounts.
Marriage and Parenthood
Families can use the Medisave Maternity Package (MMP) for delivery expenses and pre-delivery medical expenses. Examples of pre-delivery expenses would be Gynecologist consultation fees and ultrasounds.
For Medisave claimable under (MMP): up to $450 for each day hospitalised, $900 for pre-delivery medical expenses and surgical withdrawal amount incurred depending on the type of delivery procedure eg. Vaginal delivery/ Caesarean delivery.
Medisave can be used in both public and private hospitals. Parents just need to collate costs incurred pre delivery, and delivery at hospital of delivery and file it under Medisave Maternity Package claims.
Medisave grants for newborns
Singapore’s government has put in place a Medisave grant for newborns to help young parents pay for medical expenses such as child vaccinations and other outpatient treatments. Eligible newborns will receive $4,000 automatically after registration of birth. This grant is applicable for infants born from 1 January 2015 onwards, or $3,000 for infants born from 26th August 2012 but before 1 January 2015.
Read more about Medisave got marriage and parenthood here.
Medical Claims Authorisation Forms
You can download the online form to claim your Medisave funds!
For Medical Claims Authorisation Form (Single Institution) (MCAF (S)): here.
For Medical Claims Authorisation Form (Multiple Institution) (MCAF (M)): here.
Singapore’s healthcare scene is working towards making healthcare more accessible for every Singaporean. Government initiatives like this is able to help families be prepared for a rainy day and cope with heavy medical expenses. Even the advent of home care services like Jaga-Me are connecting families at home with healthcare, making it easier and more accessible for families to get the care they need and to recover at home. If you are a family that requires home care services and nursing care, do check us out on our webpage here. For more caregiver resources, read our Jaga-Me Blog!