MediSave, introduced in 1984, is a national medical savings account system in Singapore. By law, all working Singaporeans and Permanent Residents must contribute 8-10.5% of their income to their MediSave account (MSA) to cover medical expenses for themselves or approved dependents, including hospitalization, day surgery, selected outpatient treatments, and healthcare needs in later years.[3]

MediSave is part of Singapore’s three key healthcare schemes, collectively known as the 3Ms, alongside MediShield and MediFund. Managed by the Central Provident Fund (CPF) under the oversight of the Ministry of Health (MOH), MediSave is designed to encourage personal responsibility in healthcare financing.[4]

History

On 1 April 1984, Mr Goh Chok Tong, who served as Singapore's Second Prime Minister (1990–2004), introduced MediSave to encourage individuals, particularly young people, to accumulate personal savings for future healthcare expenses.[5] MediSave is an integral part of the Central Provident Fund scheme, designed specifically for healthcare financing. Under this system, salaried employees are required to allocate a portion of their earnings to their MediSave accounts.[6]

In addition to emphasizing individual responsibility, Singapore's healthcare system is supported by government subsidies. To ensure affordability, the government provides subsidies directly to hospitals and healthcare providers, covering approximately 80% of approved costs for Class C wards, 65% for B2 wards, 20% for B1 wards, and none for Class wards A.[7]

Contributions

For a salaried employee who is a Singapore Citizen or Permanent Resident, MediSave contributions are deducted from their monthly Central Provident Fund contributions. Both the employer and employee contribute a percentage of the employee’s monthly salary to the CPF account, with contribution rates varying by age.[8]

CPF Contribution rates from 1 January 2025 (For monthly wages below $750)[9]
Employee's age (years) By employer

(% of wage)

By employee

(% of wage)

Total

(% of wage)

55 and below 17 20 37
Above 55 to 60 15.5 17 32.5
Above 60 to 65 12 11.5 23.5
Above 65 to 70 9 7.5 16.5
Above 70 7.5 5 12.5


Since January 1988, self-employed individuals earning over $6,000 per year have been required to contribute to Medisave, with contributions capped at an annual income ceiling of $72,000.[10] The contribution rates, which vary based on age, are the same as those for employed individuals. However, self-employed individuals must cover both the employer and employee portions of the contributions themselves.

MediSave contribution rates for self-employed person (non-pensionable)[11]
Net trade income in 2023 (for Year of Assessment 2024) Age as at 1 Jan 2023
Below 35 years old 35 to below 45 years old 45 to below 50 years old 50 years old and above
Above $6,000 to $12,000 4% 4.5% 5% 5.25%
Above $12,000 to $18,000 4% to 8% 4.5% to 9% 5% to 10% 5.25% to 10.5%
Above $18,000 8% 9% 10% 10.5%
Maximum $5,856 $6,588 $7,320 $7,686


CPF contributions are distributed across three accounts: the Ordinary Account, MediSave Account, and Special Account. The allocation to the MediSave Account varies between 21% and 84%, depending on an individual's CPF contributions and age.

CPF Allocation Rates from 1 January 2023 Private Sector / Non-Pensionable Employees[12] (Ministries, Statutory Bodies & Aided Schools)
Employee's Age (Years) Ordinary Account

(% of CPF contribution)

Special Account

(% of CPF contribution)

MediSave Account

(% of CPF contribution)

35 & below 62.17% 16.21% 21.62%
Above 35 – 45 56.77% 18.91% 24.32%
Above 45 – 50 51.36% 21.62% 27.02%
Above 50 – 55 40.55% 31.08% 28.37%
Ordinary Account (Ratio of Contribution) Retirement Account (Ratio of Contribution) MediSave Account (Ratio of Contribution)
Above 55 – 60 36.94% 30.76% 32.30%
Above 60 – 65 14.9% 40.42% 44.68%
Above 65 – 70 6.07% 30.3% 63.63%
Above 70 8% 8% 84%

Example 1: If a 30 years old employee's CPF contribution amounts to $100, the allocation of the contribution will be as follows[13]:

Employee’s Age (Years) CPF Contribution Ordinary Account Special Account MediSave Account
35 & below $100 $62.17 ($100 – $21.62 – $16.21) $16.21 ($100 x 0.1621) $21.62 ($100 x 0.2162)

Medical Claim and Coverage

Who can benefit from MediSave?

MediSave can be utilized by all Singapore Citizens and Permanent Residents, as well as their family members, including spouses, children, parents, grandparents, and siblings. While family members of any nationality are eligible, grandparents and siblings must be Singapore Citizens or Permanent Residents.[14]

Typically, individuals who share their MediSave funds with family members have usually depleted their own accounts. Such MediSave transfers among family members are particularly beneficial for elderly parents who have depleted their savings or for unemployed individuals without a contribution history.[15]

A 1995 survey of 4,750 individuals aged 55 and above revealed that 65% of elderly women’s healthcare expenses and 43.8% of elderly men’s were covered by their children's MediSave. Only 17.9% of respondents—30.1% of men and 6.9% of women—relied solely on their MediSave savings. In 1998, 44% of acute patients in public hospitals used their own MediSave, while 52% relied on their children’s MediSave, meaning 96% of patients used CPF-related funds for medical expenses.[16]

What can MediSave for be used for?

MediSave can be used to cover a range of medical expenses, including:

Outpatient Treatments[17]
The MediSave 500/700 scheme enables patients with complex chronic conditions to claim up to $700 annually, while other patients can access up to $500 per year for outpatient care. To qualify for this scheme, patients must have two or more conditions listed under the Chronic Disease Management Programme (CDMP), or one CDMP condition with complications, within a year.
Chronic Disease Management Programme (CDMP) Metabolic Conditions
Mental health conditions
Respiratory conditions
Other conditions
Children's Health Childhood Vaccinations (Under the National Childhood Immunisation Schedule)
  • Pneumococcal vaccinations (for children below 5 years of age)
  • Haemophilus Influenza Type B (Hib)
Newborn Health Screening
  • Hearing
  • G6P deficiency
  • Metabolic
  • Thyroid function
Adult Vaccinations (for target populations under the National Adult Immunisation Schedule)
Health Screening
  • Mammogram Screenings (for women aged 50 and above)
  • Selected screening tests for newborns in the outpatient setting
Hospitalisation or Day Surgery[18]
For Hospitalisation Claim up to $550 per day for the first two days of inpatient hospital charges, which cover daily ward fees, treatment costs, investigations, and medications. After the first two days, you can claim up to $400 per day. For inpatient psychiatric treatment, you can use up to $550 per day for the first two days, followed by $150 per day, with a maximum annual limit of $5,000.
For Day Surgery Claim up to $300 per day for hospital charges related to day surgery, covering daily ward fees, treatment costs, investigations, and medications.
For Surgery Withdraw between $250 and $7,550, depending on the complexity of the surgery. The withdrawal limits are determined by a fixed amount outlined in the Table of Surgical Procedures (TOSP).
Table of Surgical Procedures (TOSP)[19]
Table A B C
1 $250 $350 $450
2 $600 $750 $950
3 $1,250 $1,550 $1,850
4 $2,150 $2,600 $2,850
5 $3,150 $3,550 $3,950
6 $4,650 $5,150 $5,650
7 $6,200 $6,900 $7,550
Long-term Care[20]
MediSave Care is available to Singapore Citizens or Permanent Residents aged 30 and above who have severe disabilities. Under this scheme, eligible individuals can receive a monthly cash payout of up to $200, amounting to $2,400 annually. Eligibility is determined through an assessment by MOH-accredited assessors, who evaluate whether the individual is unable to perform three or more of the six activities of daily living: washing, dressing, feeding, toileting, mobility, and transferring.
Medisave Care Quantum Table [21](The table shows the eligible withdrawal amount)
MediSave Balance Monthly Withdrawal Quantam
$20,000 and above $200
$15,000 and above $150
$10,000 and above $100
$5,000 and above $50
Below $5,000 $50
Rehabilitation
Palliative care
Disability care Under MediSave Care, individuals aged 30 and above with a severe disability can withdraw up to $200 per month from their own and/or their spouse’s MediSave.

A minimum balance of $5,000 must be maintained in MediSave.

Where can MediSave be utilised?

MediSave can be used to cover a range of medical services at MediSave-approved clinics, as well as at all public healthcare institutions and participating medical institutions (MIs).[22][23]

Inscentives for the Elderlies

Flexi-MediSave

2025 Matched MediSave Scheme

Controversies

Inappropriate Claims

See also

References

  1. ^ Ministry of Manpower. "Central Provident Fund Board." www.gov.sg. November 23, 2015.
  2. ^ Ministry of Manpower, "Appointment of Ms Yong Ying-I as Chairman of The Central Provident Fund Board." Ministry of Manpower. June 1, 2021.
  3. ^ Dong, Weizhen. “Can Health Care Financing Policy be Emulated? The Singaporean Medical Saving Accounts Model and its Shanghai Replica.” Journal of Aging & Social Policy 16, no. 1 (2006): 209-214.
  4. ^ Dong, "Can Health Care Financing Policy be Emulated?," 209.
  5. ^ Reisman, D. A. “Medisave and MediShield in Singapore: Getting the Balance Right.” Saving and Development 30, no 2. (2006): 189-215.
  6. ^ Reisman, “Medisave and MediShield in Singapore: Getting the Balance Right,” 190.
  7. ^ Ministry of Health. "Hospital Stays." Ministry of Health. October 26, 2024.
  8. ^ Central Provident Fund Board. "How Much CPF Contributions to Pay." Central Provident Fund Board. January 2, 2025.
  9. ^ Central Provident Fund Board. "How Much CPF Contributions to Pay." Central Provident Fund Board. January 2, 2025.
  10. ^ Dong, "Can Health Care Financing Policy be Emulated?," 210.
  11. ^ Inland Revenue Authority of Singapore. "Compulsory and Voluntary MediSave Contributions." Inland Revenue Authority of Singapore. 2025.
  12. ^ Central Provident Fund Board. "CPF Allocation Rates 2025." January 1, 2025.
  13. ^ Central Provident Fund Board. "CPF Allocation Rates 2025." January 1, 2025.
  14. ^ Central Provident Fund Board. "Using your MediSave Savings for Yourself and Your Loved Ones." Central Provident Fund Board. December 19, 2024.
  15. ^ Teo, Peggy. “Health Care for Older Persons in Singapore: Integrating State and Community Provisions with Individual Support.” Journal of Aging & Social Policy 16, no. 1 (2008): 43-67.
  16. ^ Reisman, “Medisave and MediShield in Singapore: Getting the Balance Right,” 191.
  17. ^ Central Provident Fund Board. "Using MediSave for Outpatient Treatments." Central Provident Fund Board. December 19, 2024.
  18. ^ Central Provident Fund. "Using Medisave for Hospitalisation." Central Provident Fund Board. December 19, 2024.
  19. ^ Central Provident Fund. "Using Medisave for Hospitalisation." Central Provident Fund Board. December 19, 2024.
  20. ^ Ministry of Health. "Long Term Care: Find Out How MediSave can be used to Pay for Long-term Care in Singapore." Ministry of Health. November 4, 2024.
  21. ^ Central Provident Fund Board. "Supplement your Long-term Care Needs with MediSave Care." Central Provident Fund Board. January 2, 2025.
  22. ^ Community Health Assist Scheme. "Clinic Locator." Community Health Assist Scheme. 2025.
  23. ^ Central Provident Fund Board. "Using Your MediSave for Yourself and Loved Ones." Central Provident Fund Board. December 19, 2024.
Allikas: https://en.wikipedia.org/wiki/Medisave
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