The Ministry of Health (MOH) announced on Oct 15, premium for MediShield Life will increase by an average of 22% from April 2025 to March 2028. (Source:  MOH, Straits Times)

The cost of living has been rising steadily over the past four years, so while this news may feel surprising, it’s not entirely unexpected—especially considering that MediShield Life premiums have remained relatively stable since its launch in 2015. It’s also important to note that with the premium increase, the updated MediShield Life will provide higher claim limits.

But will people be able to afford this increase? Health Minister Ong Ke Yung reassured us on October 18, stating:

Most people will not feel the brunt of higher MediShield Life premiums.

How is that possible? The government has set aside $4 billion to help cushion the impact of the premium hike, with $700 million allocated for premium subsidies, as detailed below from Straits Times:

In addition to premium subsidies, there will also be:

• Increased annual MediSave top-ups for Pioneer Generation seniors aged 75 and older, raising the maximum annual top-up to $1,200.
• A one-time MediSave Bonus under the ‘Majulah Package’ will rise from a maximum of $1,500 to $2,000.
• A $500 MediSave Bonus in 2025 for those born between 1950 and 1973 for individuals with low MediSave balances.
• A one-time MediSave Bonus this December of $500 for those born between 1974 and 2003, up from $300.
• An increase in the MediSave grant for newborn Singaporeans from $4,000 to $5,000.
• Additional premium support for those who still find MediShield Life unaffordable after subsidies.

In summary, while the 22% increase in MediShield Life premiums may be concerning, government support will help ease the impact. As a financial advisor, I’m here to help you navigate these changes and find the right coverage for your needs. Contact me for a personalized consultation.