Singapore Medical Guide | Singapore Healthcare

The social security system in Singapore is based on a compulsory savings fund managed by the Government. All working adults are required by law to contribute a percentage of their monthly pay into a savings account within the Central Provident Fund under their own names.

Their employers are also required to contribute a smaller percentage into this fund as well. This compulsory savings cannot be withdrawn for living expenses until retirement. They can, however, be used for purchase of housing, children’s education, and medical expenses.

The second safety net is MediShield. This is a basic healthcare insurance policy that can be purchased using funds from one’s own Medisave account. It is a low cost policy that serves to protect against astronomical healthcare costs resulting from unexpected catastrophic illnesses.

It is not meant as a generic hospitalization and surgical policy that covers the more common and minor conditions. This is where private insurance companies come in.

Nowadays, with escalating healthcare costs, the government is encouraging citizens to use money in their Medisave accounts to purchase additional healthcare insurance. This is to provide an additional safety net should higher medical costs deplete one’s Medisave at a faster rate than expected.

Many insurance companies offer such basic hospitalization and surgical insurance schemes with premiums that can be deducted from one’s Medisave without need for cash. (Prushield managed by Prudential Assurance www.prudential.com.sg, or Incomeshield managed by NTUC Income www.income.com.sg)

Finally, there is MediFund. This is the last safety net for those who have exhausted their MediSave and MediShield, and are still unable to meet their medical expenses. They may then apply to MediFund, which is essentially a government endowment fund for needy patients.

These are the 3Ms, which together with government subsidies, make up the pillars of Singapore healthcare financing.