MediShield fund $5.9b, claims to premiums ratio 43%?

According to the Ministry of Health‘s (MOH) web site – “As at end 2016, the total assets of the Fund stood at $ 5.9 billion. Over the past 5 years, on average, about two-thirds of the Fund comprised reserves to fund the expected scheme liabilities.”

Does this mean that the claims paid as a proportion of the assets of the fund were about $1.967 billion (0ne-third), with about $3.93 billion (two-thirds) as reserves?

From the table below – the actual claims paid was $2.734 billion with $3.417 required reserves.

The claims paid to premiums collected ratio was 43.2% ($2.734 divided by $6.332 billion).

Is this the lowest claims to premiums ratio of all the national health insurance schemes in the world?

If we include the interest earned by the fund – what is the loss ratio?

As to “The following table shows the Fund’s incurred loss ratio over the period 2012 to 2016. The incurred loss ratio over the period is 99%. This is derived from the Fund receiving $4,871 million in premiums while paying out or setting aside $4,815 million to support policyholders’ claims and scheme liabilities” – since it is a mandatory scheme which even Singaporeans and PRs living abroad have to pay premiums, and the premiums increase with age as well as the premiums and premium subsidies can be decided almost at the will of the Government – is there really a need to have so much reserves “to support policyholders’ claims and scheme liabilities”?

Is this the ‘most reserves’ national health insurance scheme in the world?

Table: MediShield Life Fund Incurred Loss Ratio (in $millions)  

Year Premiums Collected
[A]
Total Monies Required for Fund Operations
[B] + [C]
Incurred Loss
Ratio
([B] + [C] / [A])
Claims Paid
[B]
Change in Required Reserves
[C]
2013 $770m $335m $366m 91%
2014 $723m $381m $331m 98%
2015 $1,099m $437m $569m* 92%
2016 $1,858m $745m $1,182m 104%
2017 $1,882m^ $836m $969m 96%
2013-2017 $6,332m $6,151m 97%

Source: CPF Annual Reports

^ In 2017, the Government provided $821mil (44%) in premium subsidies and other forms of support to help keep premiums affordable for Singapore Residents.

 

Leong Sze Hian

 

 

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9 Responses to “MediShield fund $5.9b, claims to premiums ratio 43%?”

  • Whats a going on?:

    Looks like sgs are a real sick bunch..
    So many sick claiming millions from their/the common
    medishield pot?
    SG is a sickly country..
    Hospitals n private clinics full most of the time. Whats going on?
    Recently i was at aljunied polyclinic. Was packed at 10am…so i left .next day went to bedok poly. Also packed. The receptionist said everyday is the same…when i suggested since my prblm is not so urgent i will come some other day…

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  • Whats a going on?:

    Shouldnt the gov do a survey to find out whats making so many people sick in this supposedly richest city paradise.
    Seems sick people is a very lucrative enterprise.
    Very unsettling.

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  • William C:

    I notice that the GD rating works initially. When about 10 or more comments written, it will not load. Can someone advise?

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  • Medishield perforated:

    What has our compulsory CPF contributions gone to make rather than the stated fund to ease our retirement years? They’ve fashioned our savings into a public housing whirlpool paired to a staggering hospitalization piggy bank. Whence is civic governance by the people for the people?

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  • LIONS:

    What$ wrong with collecting more $,Ngiam Tong Dow?

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  • LIONS:

    MEDICAL BENCHMARK as re-introduced should be quickly implemented,there ought to be no delays or procrastination as medical costs,even in GOVT HOSPITALS,are simply IRRATIONAL N BURDENSOME N PARALYSING TOO!

    EVEN AFTER RECOMMENDED BENCHMARKING BY CON-mittee,i feel medicla fees for surgeries are way too high.

    i sincerely hope the govt can bring it down more meaningfully???
    in some cases,it is just a thousand or so from high numbers as compared to our regional neighbours.

    i hope to see more medical advancement in our neighbours like Thailand n Malaysia so that we can all go there as MEDICAL TOURISTS to have our surgeries,if needed, as well as have EXTRAS from the SAVIBGS to take a NICE RESTS there MUCH LIKE HOW indonesians n others do so in SIN CITY???!!!!

    IF OUR GOVT N DOCTORS THINK THEY CAN CONTINUE TO $CREW US,THEY BETTER THINK THRICE!

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  • LIONS:

    INSURANCE COMAPNIES SHUD BE SMARTER SO AS TO SAVE COSTS FOR THEIR PAY-OUTS BY ALLOWING SGS TO DO OPS OVERSEAS!!!!

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  • another0:

    this is a timely article.
    btw,there are many older sgs,former PMEs with good jobs n good company medical benefits too,who have now to PAY THEIR OWN EXPENSIVE MEDICAL BILLS as they are experiencing more sicknesses due to old age.

    it is time the govt that took away our good n decent-paying jobs and hand them to their FAKE TALENTS,DO SOMETHING FOR THOSE OLDER JOBLESS SGS with regards to MEDICAL SUBSIDIES AND REMOVAL OF GST ON BIG MEDICAL TICKETS.

    ARE YOU THERE LEE HL?

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  • HarderTruths:

    Actually the other 53% is claimed by Gahmen.

    So it is still 100% overall.

    Well done SG!! Ownself claim from ownself.

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