Healthcare costs can be expensive, and this is usually so the older we get. For this reason, all Singaporeans are required to contribute a portion of their monthly paycheck into their CPF MediSave Account – a national medical savings account – to ensure that you have enough savings for future medical expenses. 

But what is it exactly and what can you use your MediSave funds for? Is it relevant if you are young and healthy? Read on to learn all you need to know about MediSave in Singapore, from CPF MediSave contributions, to what you can use it for and how to make a MediSave claim.  

What is MediSave? 

Every Singaporean and PR has a set of CPF accounts that cater to our different needs, which comprises the Ordinary Account, Special Account and MediSave Account. These are primarily used to help Singaporeans save up for housing, retirement, and healthcare expenses respectively.

Your MediSave savings are meant to help to defray the cost of future medical expenses and you can use it to pay for hospital fees, select outpatient treatments, long-term care, and even premiums for certain types of insurance. . 

How much of my CPF goes to MediSave?

Every month, a portion of your salary goes into your CPF accounts, which is split between your Ordinary Account (OA), Special Account (SA) and MediSave Account (MA). CPF contributions usually come from you as well as your employer.

From 1 January 2023, CPF contribution rates will also be increased for employees aged above 55.

Here are the CPF contribution rates as well as how they’re allocated to the various accounts, with changes from 2023 reflected in parentheses below: 

MediSave contributions for the self-employed 

Think you’re spared from making CPF contributions if you’re self-employed? Think again.

While you’re not obligated to top up your Ordinary Account or Special Account if you don’t feel like it, you have to contribute to your CPF MediSave Account. Yes, even if you’re self-employed.

The good news is, self-employed MediSave contributions are only required once a year during tax season. How much you’ll have to contribute is dependent on your age and income, or you can use this calculator to help you compute the amount. 

If you have already met the Basic Healthcare Sum (BHS), which is the maximum amount that you can have in your MediSave Account and currently set at S$66,000 for 2022, you are still required to make contributions.

Any excess contributions beyond the BHS will then be funnelled to your SA if you are below 55, RA if you are above 55, or OA if you are above 55 and have reached your Full Retirement Sum (FRS). 

MediSave and Medishield Life, are they the same?

It’s understandable if you’re confused between MediSave and MediShield Life due to their similar sounding names, but they’re two very different things.

As you’d know by now, MediSave is a savings account that you can use to pay for future medical expenses. MediShield Life on the other hand, is a national health insurance scheme that offers lifelong protection against huge healthcare costs by covering large hospital bills at B2/C wards as well as expensive outpatient treatments like chemotherapy.

While different, both MediSave and MediShield Life complement each other to help you defray your medical expenses. For instance, there’s a claim limit for MediSave and it can only be used for a specific list of medical expenses. However, you can use your MediSave to pay for your MediShield Life premiums, which in turn offers lifetime coverage for a wider range of medical expenses with no claim limits.   

What can I use MediSave for and is there a cap?

If you’re wondering how you can make better use of the money you’ve been putting into your MediSave Account each month, this one’s for you. Keep your cash, because here’s a list of things that you can pay for using your MediSave funds.

However, note that it’s not a free-for-all as your funds can be depleted. For that reason, there is a MediSave cap on how much you can withdraw, as listed below. 

Health insurance premiums

As mentioned earlier, you can use your MediSave funds to pay for MediShield Life as well as CareShield Life premiums. If you choose to get an Integrated Shield Plan (IP) for additional coverage, you can also use your MediSave to pay for the premiums, but subject to a withdrawal limit of:

●      $300/year for those aged 40 years and below on their next birthday

●      $600/year for those between 41 and 70 years on their next birthday

●      $900/year for those aged 71 years and above on their next birthday

Have aged parents at home who don’t have much in their MediSave? You can use your MediSave funds to pay for their health insurance premiums. This applies to other immediate family members such as your spouse, children, grandparents and siblings as well. 

Hospitalisation and surgery

Similarly, you can use your MediSave to pay for your hospitalisation fees as well as that of your dependents’. This includes day surgeries and various types of inpatient care:

●      Inpatient care at acute hospitals: Up to $550 for the first two days, and $400/day thereafter

●      Inpatient psychiatric care: Up to $150/day, capped at $5,000/year

●      Day surgery: Up to $300/day for daily hospital charges

●      Surgical procedures: This can range from $250 to $7,550 depending on the procedure. The full list can be found in the Table of Surgical Procedures (TOSP).

●      Inpatient stays at approved community hospitals: Up to $250/day, capped at $5,000/year

●      Inpatient stays at approved convalescent hospitals: Up to $50/day, capped at $3,000/year

●      Treatment in approved day hospitals: Up to $150/day, capped at $3,000/year

Conception, pregnancy and delivery expenses

Parents-to-be rejoice, you can tap on the MediSave Maternity Package to help with pregnancy related expenses. Besides being able to claim from your MediSave for inpatient care, you can also claim an additional $900 for pre-delivery medical expenses.

Couples who are looking for help in conceiving can also use their MediSave funds for Assisted Conception Procedures (ACP) such as IVF, subject to the following withdrawal limits:

●      1st cycle: $6,000

●      2nd cycle: $5,000

●      3rd and subsequent cycles: $4,000

ACP claims are also capped at a lifetime withdrawal limit of $15,000 per patient.

Outpatient treatment

You can use your MediSave for outpatient treatments that include vaccinations, chronic diseases, health screenings as well as cancer treatments such as radiotherapy and chemotherapy. 

Under the MediSave500 or MediSave700 scheme, you can withdraw up to $500 if you have a simple chronic condition, or $700 if you have a complex chronic condition, which can then be used for chronic disease treatments, vaccinations and health screenings.

This includes outpatient treatment for 20 conditions such as diabetes, hypertension, ischaemic heart disease as well as depression and schizophrenia among others, but subject to a 15% co-payment. 

Beyond that, your MediSave can also be utilised for a non-exhaustive list of outpatient treatments. Here’s a sample of what’s included:

●      Flexi-MediSave for the Elderly: Those aged 60 and above can use up to $300 of their MediSave funds for consultations at polyclinics, specialists at public hospitals and national specialty centres, and CHAS GP clinics.

●      Renal dialysis treatment: Up to $450/month

●      Radiotherapy for cancer patients: From $80 to $2,800/treatment

●      Radiosurgery treatment for cancer patients: Up to $7,500/course

●      Chemotherapy for cancer patients: Up to $1,200/month

●      Diagnostic scans for cancer patients: Up to $600/year

●      Anti-retroviral treatment for HIV patients: Up to $550/month

However, cancer patients should be aware that MediSave withdrawals can only be made for cancer drugs and treatments that are on the Ministry of Health’s (MOH) Cancer Drug List from September 2022. If you have a family history of cancer, it might be worth expanding your coverage with an additional critical illness or health insurance plan. 

Long term care

Did you know that your MediSave can be used to pay for yours or your parents’ rehabilitative or palliative care? Here’s how much you can claim:

●      Day rehabilitation at approved centres: Up to $25/day, capped at $1,500/year

●      Inpatient hospice palliative care: Up to $250/day, or $350/day for specialised care

●      Home palliative or day hospice care: Combined lifetime withdrawal limit of $2,500, or unlimited if diagnosed with terminal cancer or end stage organ failure and using your own MediSave account.

Besides that, severely disabled Singaporeans aged 30 and above can withdraw up to $200 each month for their long-term care needs. Otherwise known as MediSave Care, how much you can withdraw depends on your MediSave balance:

How can I make a MediSave claim?

There are primarily two ways to go about this, but both include filling in a form to authorise the withdrawal of your MediSave savings for approved treatments.

If you are planning to withdraw your MediSave funds for treatments at private healthcare institutions, or if you prefer to provide authorisation for each visit, you have to fill in the Medical Claims Authorisation Form (Single), also known as MCAF(S), before submitting it to the relevant institution.

Alternatively, you can fill in the Medical Claims Authorisation Form (Multiple Institutions), also known as MCAF(M) if you prefer the convenience of filling in the form just once. This one-time authorisation will apply to all current and future treatments at participating institutions, which includes public hospitals and polyclinics. You can also submit your MCAF(M) electronically on HealthHub.

Is MediSave enough for your future medical expenses?

MediSave can be useful in helping you pay for healthcare expenses without having to worry about making huge cash outlays. For this reason, it’s worth knowing what you can use it for to make better use of your money.

However, bearing in mind that healthcare costs are rising and that your MediSave funds are finite, it may be worth getting additional health insurance to cover yourself against future medical expenses!