Medishield Life Premium – Government subsidies

With reference to my blog written on 7 June 2014, I wrote:

“The government will provide subsidies for bottom two-thirds of households to help them cope with increase in premium as a result of Medishield Life. Details are still sketchy based on the reports of Medishield Life in major newspapers. For one, mean-testing of those households that qualify was not completely spelt out. Will the annual value of one’s residence be used again beside per capita family income to determine who qualifies for subsidies? I would think that this would be the case like the CHAS scheme, where annual value of residence is also used.”

Today with the announcement from the committee, the annual value of one’s residence is also factored in in calculating government subsidies besides the household per capita income. For those with low household income (e.g. retirees) who continue to stay in private properties (with annual value of $21,001 or more) will only get transitional subsidies for 4 years (fifth year is zero subsidy). (See screenshot 1)

screen shot1

 

 

 

 

 

This contrasts with others staying in properties with AV of less than $21,001 and above $13,000, the subsidies include a mean-tested government subsidies and transitional subsidies. (See screenshot 2)

Screen shot2

 

 

 

 

 

Those who live in private properties (AV > $21,000) will receive less government subsidies for Medishield Life premium even when your household per capita income is low.

Copyright © 2014, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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