TL;DR: Medisave in 5 Seconds
- Medisave is a national savings scheme to help Singaporeans save up for medical expenses in future.
- Money in the Medisave Account enjoys 4% risk-free interest rate per annum (until 31 December 2018)
- The Basic Healthcare Sum for Medisave is currently set at S$54,500
- One can use his Medisave for his own treatment or that of his immediate family members.
- Approved expenses include health screening, vaccinations, hospitalisation treatment, end-of-life care, outpatient treatment of approved chronic conditions etc.
All you need to know about Medisave
- What is Medisave?
- Allocation rate of CPF into Medisave
- Pros and Cons of Medisave
- Basic Healthcare Sum 2018
- Things you can do with your Medisave
- How can I claim my Medisave?
- Frequently Asked Questions (FAQ) on Medisave
What is Medisave?
Here’s a quick recap of our CPF system, as mentioned in Seedly’s CPF Crash Course:
Here’s how your CPF allocation looks like:
| Accounts | Usage | Interest Guaranteed | Contribution Rates |
|---|---|---|---|
| Ordinary Account (OA) | Housing, Investments, Education, Approved Insurance | 2.5% | Age < 35: 23% Age 34-45: 21% Age 45-50: 19% Age 50-55: 15% |
| Special Account (SA) | Old Age/ Retirement-related financial products | 4% | Age < 35: 6% Age 34-45: 7% Age 45-50: 8% Age 50-55: 11.5% |
| Medisave Account (MA) | Hospitalisation expenses, Approved medical insurance | 4% | Age < 35: 8% Age 34-45: 9% Age 45-50: 10% Age 50-55: 10.5% |
- Medisave is a national saving scheme to help Singaporeans save up for medical expenses in future.
- The main objective is to set aside part of an individuals income, to help them deal with possible hospitalisation, day surgery and certain outpatient expenses bills in future.
- It can also be used to help offset their immediate family’s medical expenses.
Allocation rate of CPF into Medisave
| Age (Years) | Allocation Rates as of 1 January 2016 (for monthly wages S$750 and above) |
||
|---|---|---|---|
| Ordinary Account (% of wage) | Special Account (% of wage) | Medisave Account (% of wage) |
|
| 35 and below | 23 | 6 | 8 |
| Above 35 to 45 | 21 | 7 | 9 |
| Above 45 to 50 | 19 | 8 | 10 |
| Above 50 to 55 | 15 | 11.5 | 10.5 |
| Above 55 to 60 | 12 | 3.5 | 10.5 |
| Above 60 to 65 | 3.5 | 2.5 | 10.5 |
| Above 65 | 1 | 1 | 10.5 |
- Singaporean’s CPF contribution is allocated to 3 different accounts, mainly the Ordinary Account (OA), Special Account (SA) and Medisave Account (MA).
- The allocation of monthly wage into the Medisave Account can range from 8% of wage to 10.5%.
| Net Trade Income | Self-employed person's age at 1 January | |||
|---|---|---|---|---|
| Below 35 years old | 35 to below 45 years old | 45 to below 50 years old | 50 years and above | |
| >S$6,000 - S$12,000 | 4.00% | 4.5% | 5.00% | 5.25% |
| >S$12,000 S$18,000 | 4.00% - 8.00% | 4.5% - 9.00% | 5.00% - 10.00% | 5.25% - 10.5% |
| >S$18,000 | 8.00% (max S$5,760) | 9.00% (max S$6,480) | 10.00% (max S$7,200) | 10.50% (max S$7,560) |
- For self-employed, the percentage ranges from 4% to 10.5% depending on Net Trade Income and age.
Pros and cons of Medisave
Pros of Medisave
The pros of Medisave is very much like all the money that is allocated to one’s CPF Account.
- Money in the Medisave Account earns an interest rate of 4% per annum (until 31 December 2018)
- Despite the 4% interest rate per annum, Medisave is considered risk-free.
- Medisave helps one save! This is especially important for Singaporeans who have difficulty saving up (very much like me and my Adidas Originals Sneakers addiction).
Cons of Medisave
Some Singaporeans may disagree with the Medisave system because it is illiquid and it locks up a sum of money for a long time for only a particular usage.
More financial savvy Singaporeans might also be able to beat the stated percentage with their investments.
Basic Healthcare Sum 2018
The Basic Healthcare Sum is the cap to one’s Medisave Account.
Once the Basic Healthcare Sum is reached, any extra contributions will be allocated to other CPF accounts automatically.
- For Singaporeans below 65 years old as of 1 January 2018, their Basic Healthcare Sum is increased to S$54,500 from the previously S$52,000.
- For Singaporeans who turn 65 years old in the year 2018, their Basic Healthcare Sum remains at S$54,500.
- For those who are 66 years old and above in the yeat 2018, their Basic Healthcare Sum remains unchanged from their previously fixed amount.
Things you can do with your Medisave
Do take note that one can use his Medisave for his own treatment or that of his immediate family members.
Immediately family members include children, spouse, parents and grandparents.
- Immediate family members can be of any nationality, except grandparents.
- It is a must that the grandparents be a Singapore Citizen or Permanent Residents to enjoy the Medisave benefits.
Below is a whole range of what one can use his Medisave for:
Prevention
Here’s a list of approved outpatient scans and vaccinations and their Medisave withdrawal limits:
| Prevention Treatments | Medisave Withdrawal Limits |
|---|---|
| Vaccinations (target populations only) |
|
| Pneumococcal vaccinations (children under the age of 5) | S$400 per year per account Cash co-payment of 15% applies to treatments for approved chronic conditions |
| Hepatitis B Vaccination | |
| HPV Vaccinations (females aged 9 to 26) |
|
| Measles, Mumps and Rubella (MMR), Tuberculosis (BCG), Diptheria, Pertussis & Tetanus (DTaP/Tdap), Poliomyelitis, Haemophilus Influenza Type B (Hib) | |
| Influenza and pneumococcal vaccinations (persons in recommended risk of developing influenza-related complications and severe pneumococcal disease) |
|
| Varicella vaccinations | |
| Health Screening | |
| Screening mammograms (woman aged 50 and above) | S$400 per year per account Cash co-payment of 15% applies to treatments for approved chronic conditions |
| Screening tests for newborns in outpatient setting - Hearing test - G6P deficiency screening - Metabolic screening -Thyroid function test |
|
| Outpatient scans | |
| Outpatient scans and other diagnostics for cancer treatment | Up to $600 per year per patient |
| Scans for diagnosis or treatment of a medical condition | Up to $300 per year per patient |
Acute and Rehabilitative Treatments
Here is a list of approved treatment and their Medisave withdrawal limits:
| Treatments | Medisave Withdrawal Limits |
|---|---|
| Acute Care | |
| Inpatient hospitalisation | $450 per day + Surgical limits according to the Table of Surgical Procedures |
| Approved day surgeries | $300 per day + Surgical limits according to the Table of Surgical Procedures |
| Inpatient hospitalisation psychiatric treatment) | $150 per day (up to $5,000 a year) |
| Rehabilitative Care | |
| Approved community hospitals | $250 per day (up to $5,000 a year) |
| Day rehabilitation centres | $25 per day (up to $1,500 per year) |
| Approved convalescent hospitals | $50 per day (up to $3,000 a year) |
End-of-life care
When one contacted an illness which is incurable, end-of-life care involves making one comfortable by managing pain and other symptoms.
Many times it includes psychological, social and spiritual support for the family members and caregivers.
Here are the Medisave withdrawal limits for end-of-life care:
| Treatments | Medisave Withdrawal Limits |
|---|---|
| Stay in approved hospices | $200 per day |
| Home palliative care/Day hospice care | $2,500 per patient per lifetime $2,500 Medisave lifetime withdrawal limit is shared between home palliative (adults and paediatrics) care and day hospice care. For day hospice and adult home palliative patients diagnosed with terminal cancer or end stage organ failure, there will not be any withdrawal limit if the bill is paid using the patient’s own Medisave Account. |
Outpatient Treatment
Medisave also covers outpatient treatments. Here’s a list of approved treatment and their withdrawal limits:
| Outpatient Treatment | Medisave Withdrawal Limits |
|---|---|
| Approved Chronic Conditions | |
| Diabetes | $400 per year per account Cash co-payment of 15% applies to treatments for approved chronic conditions |
| Hypertension (high blood pressure) |
|
| Lipids disorders (e.g. high cholesterol) |
|
| Stroke | |
| Asthma | |
| Chronic obstructive pulmonary disease | |
| Major depression | |
| Schizophrenia | |
| Dementia | |
| Bipolar disorder | |
| Osteoarthritis (degenerative joint diseases) |
|
| Anxiety | |
| Benign prostatic hyperplasia (enlargement of the prostate gland) |
|
| Parkinson's disease | |
| Nephrosis/nephritis (chronic kidney disease) |
|
| Epilepsy | |
| Osteoporosis | |
| Psoriasis | |
| Rheumatoid Arthritis | |
| Assisted conception procedures | - 1st withdrawal - $6,000 - 2nd withdrawal - $5,000 - 3rd and subsequent withdrawals - $4,000 Subject to a lifetime limit of $15,000 per patient Only the patient’s own or patient’s spouse’s Medisave may be used. |
| Renal dialysis treatment | $450 per month per patient Only the patient's own Medisave may be used. For patients aged 18 and below, the parents' Medisave may be used. |
Some of these treatments include procedures such as radiotherapy:
| Treatment | Medisave Withdrawal Limits |
|---|---|
| External Radiotherapy | $80 per treatment |
| Brachytherapy with external radiotherapy | $300 per treatment |
| Brachytherapy without external radiotherapy | $360 per treatment |
| Superficial X-ray | $30 per treatment |
| Stereotactic radiotherapy | $2,800 per treatment |
| Outpatient radiosurgery treatment (Novalis radiosurgery treatment and Gamma Knife treatment for cancer patients) | $7,500 per treatment and $300 per day for daily hospital charge. |
| Chemotherapy (includes analgesic medication and suppressive treatments such as neuroendocrine and nuclear medicine treatments) | $1,200 per month per patient |
| Anti-retroviral drugs for treatment of HIV/ AIDS (includes drugs used to treat opportunistic infections) | $550 per month per patient Only the patient's own Medisave may be used. For patients aged 18 and below, the patient's parents' Medisave may be used. |
| Desferrioxamine drug and blood transfusion for treatment of thalassaemia | $350 per month per patient |
| Hyperbaric oxygen therapy | $100 per treatment |
| Outpatient intravenous antibiotic treatment | $600 per weekly cycle (up to $2,400 a year) |
| Rental of devices for long-term oxygen therapy and infant continuous positive airway pressure therapy | $75 per month per patient |
| Immuno-suppressant drugs for organ transplant | $300 per month per patient |
| Outpatient Bone Marrow Transplant | $2,800 per year per patient |
Get Coverage (Integrated Shield Plan)
One can also use his Medisave to get coverage. While Singapore Citizens and PRs are covered under MediShield Life, some may wish to purchase an Integrated Shield Plan to enjoy additional private insurance coverage.
Coverage for each IP may differ, hence it is up to consumers to do their due diligence.
Participating insurers for IPs are as follows:
- AlA Singapore
- Aviva
- AXA Life
- Great Eastern Life
- NTUC Income
- Prudential Assurance
The Additional Withdrawal Limits (applicable from 1 Nov 2015) are:
- $300 per year for those with age next birthday at 40 years and below
- $600 per year for age next birthday at 41 to 70 years
- $900 per year for age next birthday at 71 years and above.
- This Additional Withdrawal Limits are applied on top of the amount of Medisave use for Medishield Life Premiums.
How can I claim my Medisave?
Assuming that one sought treatment at an approved medical institution in Singapore, he can submit a Medical Claims Authorisation Form (MSAF).
For a single institution, a MCAF(S) can be used.
FOr greater convenience, one can also submit a MCAF(M) form which gives all the public healthcare institutions such as public hospitals and polyclinics the authority to claim the use of Medisave.
List of participating institutions for MCAF (M):
- Alexandra Hospital
- Changi General Hospital
- Institute of Mental Health
- Jurong Community Hospital
- Jurong Medical Centre
- Khoo Teck Puat Hospital
- KK Women’s & Children’s Hospital
- National Cancer Centre
- National Dental Centre
- National Healthcare Group Polyclinics
- National Heart Centre
- National Neuroscience Institute
- National Skin Centre
- National University Hospital
- Ng Teng Fong General Hospital
- Singapore General Hospital
- Singapore National Eye Centre
- SingHealth Polyclinics
- Tan Tock Seng Hospital
- Yishun Community Hospital
Frequently Asked Questions (FAQ) on Medisave
With Medisave being an important topic for Singaporeans, it is no surprise that the Seedly Personal Finance Community receives quite a bit of question on it.
Below are some of the commonly asked questions with regards to Medisave:
Is Primeshield from Income a good sign up? My mum Medisave Annual Interest is at S$700. She is 57 years old going 58.
She can use S$600 from Medisave to pay for the policy and top up S$15 in cash.
The policy pays out S$500 for life. Any suggestions or better alternative?
- Ong Han Wee
Given that your mum can service the S$600 premium annually with the interest generated, I propose you look at My Care from Aviva.
The premium is at S$543.08 annually with S$600 monthly payout for life if she is unable to fulfil 3 ADLs. - Valery Lee, Luke Ho and Spruyt Darren also supported the choice of going for Aviva’s My Care/ My Care Plus given that it is the most competitive plan in the market right now.
- Soon Xiaohui, one of the moderators in the Seedly’s Community provided a comparison table across Aviva, Great Eastern and Income’s policy.
What happens to my Medisave Account balance once it reaches the Basic Healthcare Sum?
Does it just sit there and earn the 4% interest, assuming no draw? Can it be withdrawn?
source: Central Provident Fund
- Once the Medisave Account(MA) reaches the Basic Healthcare Sum, it overflows to one’s Special Account(SA).
- Should one’s SA has already reached the Further Retirement Sum (FRS), the excess contribution will flow to the individual’s Ordinary Account (OA).
Editor’s Note: Got a question on Medisave or CPF, feel free to ask anonymously and get answers from our community!
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About Ming Feng
A stint in Bloomberg gifted me with a beer belly, which only grew larger when I moved on to become a Professional Trader. Now I turn caffeine into digestible finance-related content.
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