MediSave Guide: All You Need To Know About This Account

In this comprehensive guide, you will be introduced to MediSave – Singapore’s national medical savings scheme.

Learn about how MediSave may be used, the interest rate it accrues, its claiming process, whether it can be withdrawn, as well as how its savings are handled upon demise.

What is MediSave?

MediSave is 1 out of the 4 national savings accounts in Singapore, with the other 3 being the Ordinary Account (OA), Special Account (SA) and Retirement Account (RA).

Regulated by the Central Provident Fund Board (CPFB), savings in your MediSave are set aside for medical-related expenses.

Healthcare costs for you and your dependents are hence made more affordable through reimbursements under MediSave.

The ratio of your CPF savings that will enter your account is dependent on your age. The table below reflects the contribution ratio for each age group, with effect from 1 January 2022.

To ensure that your MediSave savings are adequate to pay for your healthcare charges, CPFB imposes withdrawal limits for each approved medical procedure.

Generally, these withdrawal limits are sufficient to cover the majority of healthcare charges that you or your dependents incur at subsidised inpatient wards and outpatient treatments.

What can MediSave be used for?

Your MediSave savings may be mobilised to ease the costs of healthcare for yourself and your approved dependents.

Your dependents are defined as the following individuals:

• Parent*
• Grandparent^
• Spouse*
• Child*
• Sibling^

* May belong to any nationality

^ Must be a Singapore Citizen or a Permanent Resident

The medical procedures and treatments claimable under MediSave and their corresponding withdrawal limits will be elaborated on in the later sections of this article.

What are the MediSave contribution rates for self-employed persons (SEPs)?

Who are SEPs?

If you run your own business, work for yourself, or are realising profits and losses from a business, you are considered a SEP.

Do SEPs need to make MediSave contributions?

If you are a SEP earning a net trade income* of more than $6,000, you are required to make annual contributions to your MediSave account.

*Net trade income = Gross trade income – (allowable business expenses + capital allowances + trade losses)

What is the MediSave Contribution Rate for SEPs?

Your MediSave contribution rate as an SEP is derived from your age and net trade income capped at a maximum stipulated amount.

For the year 2021, the MediSave contribution rates are as illustrated:

Your MediSave contribution rate will be computed by IRAS.

You will be informed of the exact amount via a Notice of Computation (NOC).

MediSave contributions must be made within 30 days after IRAS’ issuance of the NOC.

Alternatively, you may make MediSave contributions throughout the year through GIRO instalments.

Example of MediSave Contribution by SEP

A 37-year-old SEP is subject to the following contribution rates and contribution payable:

What is the interest rate for MediSave?

For Q3 2022 (1 July 2022 to 30 September 2022)*, you will enjoy an interest rate of 4% per annum.

Interest rates are computed using the following formula:

The 12-month average yield of 10-year Singapore Government Securities (10YSGS) + 1%^

* Considering the continuance of a low-interest-rate environment, the 4% interest rate will be extended till 31 December 2022

^ Subject to the floor interest rate, which is currently 4% per annum

MediSave interest rates are reviewed and updated quarterly.

Is there a minimum and/or maximum amount I must have in my MediSave?

MediSave account holders like yourself are required to have a stipulated amount in your account.

This amount is termed the Basic Healthcare Sum (BHS).

When you are below 65 years old, your BHS will be adjusted yearly to align with the expected increased usage of MediSave due to older age.

For the year 2022, the BHS is $66,000.

Once you turn 65 years old, your BHS will remain the same throughout the rest of your life.

The BHS for individuals who are 65 years old and older in 2022 are as follows:

What happens when my MediSave exceeds the BHS?

Any exceeding amounts in your MediSave will be ported to your SA or RA.

What can my MediSave pay for?

Hospitalisation

You may make payments for hospitalisation bills with your own, or your approved dependents’ MediSave.

Inpatient Hospital Charges

MediSave can be used for inpatient hospital charges which encompass daily ward charges, daily treatment fees, medication, and investigations.

Claims for each day of hospitalisation are subject to the following withdrawal limits:

Inpatient Psychiatric Treatment

For inpatient psychiatric treatment, a maximum of $5,000 in claims are allowed per year.

Claims for each day of hospitalisation are subject to the following withdrawal limits:

Surgery

Surgery costs may be covered by your own, or your approved dependents’ MediSave.

Depending on the complexity of your surgery, you will be allowed to claim between $250 to $7,500 for your procedure.

All surgical procedures are reflected in the Table of Surgical Procedures (TOSP), where they are classified into tables (Table 1 to 7) and allocated a rank (A, B, C).

According to the categorisation under TSOP, a corresponding fixed withdrawal limit accompanies each surgical procedure.

The fixed withdrawal limits imposed upon each category in the TSOP are as summarised:

Day Surgery

A maximum of $300 per day is claimable for day surgery payment.

This includes daily ward charges, daily treatment fees, medication and investigations.

Rehabilitation

You may mobilise your MediSave to pay for your own or your dependents’ rehabilitative care costs.

The table below depicts the maximum amounts you may claim for each respective treatment:

Health Screening Tests and Medical Scans

Your MediSave savings may be used to ease the costs of health screenings and medical scans incurred by yourself, or your dependents.

Mammograms

For mammograms, you may utilise up to $500 of your MediSave savings per year.

Colonoscopies

For colonoscopies, the maximum amount you may utilise per procedure is as follows:

*Hospital charges include costs incurred during your hospitalisation such as laboratory tests, medication and consumables, subject to a daily cap of $300.

^The withdrawal limit of $1,250 corresponds to a colonoscopy procedure with the removal of one polyp or several polyps that are less than 1cm.

A withdrawal limit of $1,500 corresponds to a colonoscopy procedure with the removal of several polyps that are larger than 1cm.

CT scans and MRI scans

For CT scans or MRI scans conducted at Polyclinics or Specialist Outpatient Clinics (SOCs), a maximum of $300 per year may be mobilised from your MediSave account.

Vaccinations

Under the National Adult Immunisation Schedule (NAIS), you may leverage your MediSave savings to pay for your own or your dependents’ vaccinations.

The below vaccinations are claimable under MediSave:

• Hepatitis B
• Varicella
• Measles, Mumps and Rubella (MMR)
• Diphtheria, Tetanus and Pertussis (DTaP/Tdap)*
• Human Papillomavirus (HPV)^
• Influenza and pneumococcal**

* For pregnant women

^ For females who are 9 to 26 years old

** For recommended risk groups; patients to consult their doctors for medical advice

Outpatient Treatment

MediSave 500/700

You may use your own or your dependents’ MediSave for outpatient treatment payments.

This encompasses treatments for chronic diseases and preventive care by General Practitioners, polyclinics, and SOCs.

Under the MediSave500/700 scheme, you may claim up to:

• $500 annually per patient for non-complex conditions
• $700 for complex chronic conditions annually per patient

A co-payment of 15% in cash applies.

To be eligible for the upper withdrawal limit of $700 annually, you must be undergoing treatment for 2 or more conditions listed under the Chronic Disease Management Programme (CDMP) or treated yearly for 1 CDMP condition with complications.

The following table details the outpatient treatments covered under MediSave 500/700:

*The CDMP consists of the following 20 chronic diseases:

1. Diabetes Mellitus / Pre-diabetes (Pre-diabetes included from June 2018 onwards)
2. Hypertension
3. Hyperlipidemia (Lipid Disorders)
4. Stroke
5. Asthma
6. Chronic Obstructive Pulmonary Disease (COPD)
7. Schizophrenia
8. Major Depression
9. Bipolar Disorder
10. Dementia
11. Osteoarthritis
12. Benign Prostatic Hyperplasia
13. Anxiety
14. Parkinson’s Disease
15. Chronic Kidney Disease (Nephrosis/Nephritis)
16. Epilepsy
17. Osteoporosis
18. Psoriasis
19. Rheumatoid Arthritis
20. Ischaemic Heart Disease (included from June 2018 onwards)

Outpatient Flexi-MediSave

You are eligible for the Flexi-MediSave scheme if you are 60 years old and above.

Flexi-MediSave enables you to pay for your own or your spouse’s outpatient medical treatments at SOCs and polyclinics, as well as general practitioner clinics that participate in the Community Health Assistance Scheme (CHAS).

The following outpatient procedures are covered under MediSave:

You may mobilise Flexi-MediSave on top of your MediSave to pay for your outpatient costs.

For instance, should you have reached the withdrawal limit for chronic disease treatments under MediSave, you may tap into your Flexi–MediSave to fulfil the outstanding bill amount.

Assisted Conception Procedures (ACPs)

ACPs administered by public hospitals, private hospitals, and SOCs are covered by MediSave.

You may mobilise your own or your spouse’s MediSave for such procedures.

Claims for ACP treatments are subject to a lifetime limit of $15,000 per patient, with the following amounts payable by MediSave:

Baby-related Expenses

MediSave Grant for Newborns (MGN)

The MGN awards you $4,000 upon the birth of your child. This amount will be credited to your newborn’s CPF account.

Should your child not be a Singapore Citizen at birth, the MGN amount will be determined based on the date your child obtains Singapore citizenship.

The disbursement of MGN will take approximately 2 months from your newborn’s birth registration.

The MGN may be used to offset the following medical expenses:

• Hospitalisation costs
• Day surgery fees
• Outpatient treatments
• Vaccinations under the National Childhood Immunisation Programme (NICP)
• Approved Integrated Shield Plan (ISP) premiums, subject to Additional Withdrawal Limits

MediSave Maternity Package

The MediSave Maternity Package enables you to utilise your MediSave savings to pay for pre-delivery and delivery charges, as well as daily hospital expenses.

Each procedure is subject to a specific withdrawal limit, and is detailed as follows:

Paediatric Treatments

Treatments for your children may be paid using your own or your spouse’s MediSave.

Such includes vaccinations under the National Childhood Immunisation Schedule (NCIS) and health screenings.

The table below states the paediatric treatments covered under MediSave:

Long-term Care: MediSave Care

Long-term care expenses are covered under MediSave Care. This scheme allows you to mobilise your own or your spouse’s MediSave for long-term care expenses.

Eligibility

To be covered under MediSave Care, one must be:

• A Singaporean or Permanent Resident
• At least 30 years old
• Severely disabled (unable to perform at least 3 out of 6 Activities of Daily Living)*

* The 6 Activities of Daily Living are:

1. Cleaning up
2. Dressing up
3. Feeding oneself
4. Toileting
5. Mobility
6. Transferring

Withdrawal Limits for MediSave Care

You may make cash withdrawals of up to $200 monthly, that is, $2,400 annually under MediSave Care.

This is provided that your MediSave has a minimum balance of $5,000 to fund your other medical expenses.

Should your MediSave have insufficient savings, you may use your spouse’s MediSave to supplement your withdrawal.

The maximum amount you may withdraw is dependent on your MediSave balance, as reflected in the following table:

Renal Dialysis

You may use your own MediSave to relieve the costs of renal dialysis.

Your dependents’ MediSave accounts may only be mobilised under the following exceptions:

• You are 21 years old or below: Your parents’ MediSave savings may be used
• Your dependent has applied to utilise their MediSave savings for your renal dialysis*

The following renal dialysis treatments are claimable under Medisave:

*Subject to case-by-case assessment and the fulfilment of the following eligibility requirements:

• Dependent must be actively contributing to MediSave
• Dependent must possess sufficient MediSave savings in his account to support his own healthcare expenses before it is mobilised for your renal dialysis treatments

Transplants

Your MediSave savings may be used to pay for the following transplant-related procedures:

*May be paid for using your dependants’ MediSave

Cancer Treatment

MediSave can be used to pay for your own or your dependents’ cancer treatments conducted at SOCs.

Chemotherapy

Claims per patient for chemotherapy treatments are capped at $1,200 per month.

Radiotherapy

For radiotherapy treatments, the maximum amount you may claim under Medisave is as follows:

Diagnostics

Claims per patient for diagnostics such as MRI scans and CT scans are capped at a maximum of $600 per year.

Radiosurgery

Claims for outpatient radiosurgery treatments are capped to $7,550 per treatment course.

Daily hospital charges are capped to a maximum of $300 per day.

Palliative Care

MediSave may be mobilised to cover palliative care costs, subject to the following withdrawal limits:

However, individuals with end-stage organ failure or terminal cancer will not be subjected to any withdrawal limit, should the bill be paid through one’s own MediSave.

Other Medical Treatments

MediSave may also be used to ease the costs of a slew of other medical procedures, detailed as follows:

* May be paid using your own or your approved dependents’ MediSave

^ Only payable by your own MediSave. Should you be 21 years old or below, your parents’ MediSave may be used instead.

Paying Insurance Premiums with MediSave

You can pay for your own or your dependents’ insurance premiums using MediSave.

MediShield Life, ElderShield, and CareShield Life

MediShield Life, ElderShield, and CareShield Life premiums may be fully paid by MediSave.

Understand everything about MediShield Life in our definitive guide.

Keen to find out more about ElderShield? Read our complete guide!

Learn more about CareShield Life here.

For a comparison of CareShield Life and ElderShield, you may also read our article on CareShield Life vs ElderShield to learn about how the 2 schemes differ.

Integrated Shield Plans (IPs)

You may use your MediSave for IP payments, subject to the following withdrawal limits:

Read more on integrated shield plans here.

ElderShield and CareShield Life Supplements

MediSave can also be used to pay for ElderShield and CareShield Life supplements, up to a maximum of $600 per calendar year per insured individual.

Check out the ElderShield Supplements available in our review of ElderShield Supplements!

Here are the best CareShield Life supplements available.

How do I make claims under MediSave?

Who are the parties that will reimburse me?

Reimbursement will be done by third parties, that is, parties whom you have entered into a contract with such as your employer or insurer.

What documents and information do I need to submit for reimbursement?

You are required to submit 3 items to your reimburser:

• Your finalised medical bill indicating the bill breakdown and payment source i.e. payment in cash, MediSave, Integrated Shield Plan, or MediShield Life.
• Your MediSave, or MediShield Life claim statement (hardcopy or electronic statement via Singpass online)
• Your 13-character alphanumeric Hospital Registration Number (HRN)

How will I be reimbursed?

If you mobilised only your MediSave or MediShield Life for payments, reimbursements will be made to your respective accounts. Cash payouts are not allowed.

Should you have utilised a mixture of payment modes, you will be reimbursed in the following order:

1. To you, cash for the money you paid upfront
2. To your MediSave account, the amount deducted
3. To you, payouts from your MediSave-approved MediShield Life or Integrated Shield Plan

How can I track the progress of reimbursement?

You may obtain details of your reimbursement at your Healthcare dashboard under “my cpf” online platform.

Can I withdraw my MediSave?

Cash withdrawals for MediSave savings are not allowed as payments for approved medical treatments will be directly made to MediSave-accredited medical institutions.

However, an exception is made under MediSave Care.

For Singaporeans who are above 30 years old and are severely disabled, cash withdrawals of up to $200 are permitted.

Withdrawals are allowed from either or both your own MediSave and your spouse’s MediSave.

What happens to my MediSave savings upon death?

MediSave savings will be distributed to the deceased’s CPF nominee(s), who can withdraw CPF funds in cash or GIRO.

If the deceased did not make a valid CPF nomination, the Public Trustee Office will distribute the CPF savings in accordance with Singapore’s intestacy laws.

Payment of Final Hospitalisation Bill

If the deceased has signed the Medical Claims Authorisation Form (MCAF), his MediSave will be mobilised for final hospitalisation bills.

Should the MCAF was not signed, the deceased’s spouse, child (21 years old and above), parents, or donee/deputy may sign it at the hospital within 2 weeks of his demise.

Other relatives may be authorised to sign the MCAF for the deceased, subject to the discretion of the Ministry of Health.

Conclusion

Wow, that was pretty long, was it?

We hope this article has shed some clarity on what the MediSave account is and how you can utilise this account for your medical expenses.

While every Singaporean and permanent resident has a MediSave account, not many are fully utilising it to their benefit.

Sure, using it to pay for hospitalisation bills makes sense.

But to maximise your MediSave savings, many recommend purchasing health insurance policies and ElderShield or CareShield Life supplements.

This is because there are limits to what you can claim with MediSave, so it’s best to get these insurance policies so that you can get more coverage.

I mean… you can’t touch this money anyway, so might as well put it to good use.

Need advice on how to maximise your MediSave account?

Talk to a financial advisor today!