9 Things To Know About Your MediSave Account
MediSave is one of the key pillars of Singapore’s social security system. All working Singaporeans and PRs residing in Singapore, whether employees or self-employed, are required to make contributions to their CPF MediSave Account.
The savings in your CPF MediSave account can be used for your healthcare needs. But you need to know when and how you can use your MediSave savings in order to make the most of them.
Here are 9 things to know about your MediSave account that will help you use it fully.
1) What is MediSave?
MediSave is a savings account administered by the CPF Board. You (and, if you are salaried employee, your employer) are required to regularly set aside money to be deposited into your MediSave account. If you are a salaried employee, this money is automatically set aside from your wages.
The money in your MediSave account can be used to pay for a number of things, including healthcare, dental care, MediShield Life premiums and medical insurance premiums. Your MediSave funds can be used for a range of specific treatments, usually subject to certain withdrawal limits.
2) What can you use MediSave for?
MediSave can be used to pay for expenses in the following categories:
- Premium payments for hospitalisation insurance (MediShield Life & Integrated Shield Plans)
- Premium payments for long-term care insurance (ElderShield, ElderShield Supplements, CareShield Life, and CareShield Life supplements)
- Inpatient care when hospitalised for at least 8 hours
- Outpatient care
- Long-term care
- Maternity care
One way you can use MediSave regardless of your age and health condition is to pay for an Integrated Shield Plan (up to stipulated withdrawal limits), which is a form of private hospitalization insurance. Being adequately covered by an Integrated Shield Plan dramatically reduces your out-of-pocket healthcare expenses and enables you to seek medical treatment with less concern about the costs.
Here’s how it works.
MediSave can also be used for a number of healthcare costs, such as the following:
3) Who has MediSave?
All Singaporeans and PRs residing and working in Singapore are required to contribute regularly to their MediSave Accounts.
Singaporeans residing and working overseas do not have to make compulsory MediSave contributions, but they are free to make voluntary contributions.
4) What are the MediSave contribution amounts for salaried employees?
Your MediSave contribution amounts will vary depending on your monthly salary or income from work or business, and whether you are an employee or self-employed.
As a salaried employee, a percentage of your salary will be set aside and deposited into your CPF accounts. This portion is called your employee CPF contribution.
In addition to your employee CPF contributions, your employer is also required to contribute some money to your CPF accounts over and above your salary. Employer’s contributions thus do not affect your take-home pay after CPF contributions.
Here are the current CPF contribution rates for salaried employees:
|CPF Contribution Rates|
|Age||By Employer (calculated as a % of your wage)||By employee (calculated as a % of your wage and set aside from your salary)||Total (calculated as a % of your wage)|
|55 and below||17||20||37|
|Above 55 to 60||13||13||26|
|Above 60 to 65||9||7.5||16.5|
When these contributions are made, they will be distributed in the following manner between your various CPF accounts, provided your monthly salary is at least $750.
Before the age of 55, when you and/or your employer make a contribution to your CPF account, the money is distributed into the following accounts:
- Ordinary Account – Savings in this account can be used for housing and education.
- Special Account – Retirement savings.
- MediSave Account – Savings can be used to pay for healthcare, dental care, MediShield Life premiums and medical insurance premiums.
When you turn 55, your Ordinary Account and Special Account will merge to become your Retirement Account. Singaporeans and PRs aged 55 and above thus have the following CPF accounts:
- Retirement Account – Retirement savings.
- MediSave Account – Savings can be used to pay for healthcare, dental care, MediShield Life premiums and private medical insurance premiums.
|Allocation rates (% of wage)|
|Age||Ordinary Account||Special Account||MediSave Account|
|35 and below||23||6||8|
|Above 35 to 45||21||7||9|
|Above 45 to 50||19||8||10|
|Above 50 to 55||15||11.5||10.5|
|Above 55 to 60||12||3.5||10.5|
|Above 60 to 65||3.5||2.5||10.5|
Matthew’s total monthly CPF contributions of $1,850 will be distributed to his CPF accounts in the following manner:
5) What are the MediSave contribution amounts for self-employed people?
If you are self-employed, you are required to make annual MediSave contributions based on your work or business income as declared on your IRAS tax return.
Unlike employees, you are not required to make contributions to your CPF Ordinary Account or Special Account, although you may do so voluntarily. You may also contribute more than required to your MediSave account.
Here are the compulsory MediSave contribution rates for self-employed people.
|Age as at 1 January|
|Annual net trade income||Below 35 years||35 to below 45 years||45 to below 50 years||50 years and above|
|Above $6,000 to $12,000||4%||4.5%||5%||5.25%|
|Above $12,000 to $18,000||4-8%||4.5-9%||5-10%||5.25-10.5%|
8% (max $5,760)
|9% (max $6,480)||10% (max $7,200)||10.5% (max $7,560)|
To check the exact amount of compulsory MediSave contributions you need to make, you can use the CPF Board’s Self-Employed MediSave Contribution Calculator here.
6) How you can check the balance in your MediSave account?
Access the government’s myCPF Online Services here by logging in with your SingPass.
Alternatively, you can download the myCPF mobile application for iOS and Android and log in using your SingPass.
7) How much interest are my MediSave savings earning?
Until 31 December 2019, the savings in your MediSave account earn a base rate of 4% per annum. (The government has not yet announced the interest rates after 31 December 2019.)
You receive an additional 1% interest on the first $60,000 of your combined balances (including up to $20,000 from your Ordinary Account).
When you hit the age of 55, you will earn an additional 1% extra interest on the first $30,000 of your combined balances (including up to $20,000 from your Ordinary Account).
8) What is the Basic Healthcare Sum and what happens when you reach it?
The Basic Healthcare Sum is a limit on the amount of money that your MediSave account can hold.
Once the Basic Healthcare Sum is reached, any money that would otherwise be allocated to your MediSave account will flow instead into your Special Account or Retirement Account.
The Basic Healthcare Sum is reviewed every year. However, when you reach the age of 65, the ceiling applicable to your own MediSave account will stay frozen and no longer change as you age.
The Basic Healthcare Sum for 2020 is $60,000. So, if you turned or are turning 65 in 2020, the ceiling on your MediSave account will remain at $60,000 for the rest of your life.
9) How to make a claim
When using your MediSave funds to pay for healthcare or dentalcare costs, you will need to submit a Medical Claims Authorisation Form to the relevant healthcare provider. This form should be submitted whether or not you are also being covered by an Integrated Shield Plan and/or MediShield Life. The healthcare provider will handle any additional paperwork on their end. You should see your MediSave withdrawals reflected on your final bill.
If you wish to use your own MediSave funds to pay for future healthcare costs at all public healthcare institutions, you can submit a Medical Claims Authorisation Form (Multiple Institutions). Thereafter, your MediSave funds will be used to pay healthcare costs at all eligible healthcare providers whenever permitted by the system.
When using MediSave to pay for Integrated Shield Plan premiums, the agent or insurer you are purchasing your plan through will handle all the necessary paperwork. The portion of your premiums to be paid through MediSave will thereafter be automatically deducted every year.
Make the most out of your MediSave funds by getting a good Integrated Shield Plan from Income. With adequate health insurance coverage, you get to enjoy quality healthcare with peace of mind.
This article is meant purely for informational purposes and should not be relied upon as financial advice. The precise terms, conditions and exclusions of any Income products mentioned are specified in their respective policy contracts. For customised advice to suit your specific needs, consult an Income insurance advisor.
This advertisement has not been reviewed by the Monetary Authority of Singapore.