Size of MediShield Fund's Reserves and Percentage Needed to Meet Claims and Premium Rebates

Debated in Parliament on 4 Aug 2014.

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As of 31 December 2013, the MediShield Fund’s reserves stood at $1.7 billion, which are used to cover scheme liabilities such as policyholders’ claims and premium rebates.
About two-thirds of the reserves support ongoing and future claims, including incurred but not yet submitted claims, expected future claims, and long-tail continuing claims, while the remainder is set aside for future premium rebates.
The portion of reserves allocated to premium rebates is expected to increase under MediShield Life to smooth premium increases in old age, with the fund’s liabilities and reserves reviewed annually using actuarial principles and audited independently.

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Gerald Giam Yean Song

Mr Gerald Giam Yean Song asked the Minister for Health (a) what is the size of the MediShield Fund's reserves as at 31 December 2013; and (b) what is the percentage of the reserves that support (i) claims incurred but not yet submitted or paid; (ii) claims not yet incurred but expected to be paid in the future; (iii) continuing claims which have a long tail; and (iv) future premium rebates.

Gan Kim Yong

The MediShield Fund's reserves were at $1.7 billion as at 31 December 2013. The reserves support scheme liabilities that include policyholders' claims as well as premium rebates to help policyholders with their premiums in their older ages.

Of the total reserves set aside, currently about two-thirds support ongoing and future claims while the rest support future premium rebates. The portion of the reserves that support premium rebates is expected to rise in future with the move to distribute premiums more evenly over policyholders' lifetimes under MediShield Life, so that net premiums after the premium rebates rise less steeply in old age.

MediShield liabilities and reserves are reviewed annually in line with established actuarial principles. The MediShield Fund accounts are audited annually by an independent auditor.

Page: 128

Summary written by AI (learn more)

As of 31 December 2013, the MediShield Fund’s reserves stood at $1.7 billion, which are used to cover scheme liabilities such as policyholders’ claims and premium rebates.
About two-thirds of the reserves support ongoing and future claims, including incurred but not yet submitted claims, expected future claims, and long-tail continuing claims, while the remainder is set aside for future premium rebates.
The portion of reserves allocated to premium rebates is expected to increase under MediShield Life to smooth premium increases in old age, with the fund’s liabilities and reserves reviewed annually using actuarial principles and audited independently.

Questions identified by AI (learn more)

Size of MediShield Fund's Reserves and Percentage Needed to Meet Claims and Premium Rebates | PAPERCUTS

Size of MediShield Fund's Reserves and Percentage Needed to Meet Claims and Premium Rebates

Debated in Parliament on 4 Aug 2014.

Summary written by AI (learn more)

As of 31 December 2013, the MediShield Fund’s reserves stood at $1.7 billion, which are used to cover scheme liabilities such as policyholders’ claims and premium rebates.
About two-thirds of the reserves support ongoing and future claims, including incurred but not yet submitted claims, expected future claims, and long-tail continuing claims, while the remainder is set aside for future premium rebates.
The portion of reserves allocated to premium rebates is expected to increase under MediShield Life to smooth premium increases in old age, with the fund’s liabilities and reserves reviewed annually using actuarial principles and audited independently.

Questions identified by AI (learn more)

Full Transcript

Gerald Giam Yean Song

Gan Kim Yong

MediShield liabilities and reserves are reviewed annually in line with established actuarial principles. The MediShield Fund accounts are audited annually by an independent auditor.

Page: 128

Summary written by AI (learn more)

As of 31 December 2013, the MediShield Fund’s reserves stood at $1.7 billion, which are used to cover scheme liabilities such as policyholders’ claims and premium rebates.
About two-thirds of the reserves support ongoing and future claims, including incurred but not yet submitted claims, expected future claims, and long-tail continuing claims, while the remainder is set aside for future premium rebates.
The portion of reserves allocated to premium rebates is expected to increase under MediShield Life to smooth premium increases in old age, with the fund’s liabilities and reserves reviewed annually using actuarial principles and audited independently.

Questions identified by AI (learn more)

Size of MediShield Fund's Reserves and Percentage Needed to Meet Claims and Premium Rebates

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Questions Identified

Full Transcript

Gerald Giam Yean Song

Gan Kim Yong

Summary

Questions Identified

Size of MediShield Fund's Reserves and Percentage Needed to Meet Claims and Premium Rebates

Summary

Questions Identified

Full Transcript

Gerald Giam Yean Song

Gan Kim Yong

Summary

Questions Identified