On 14 December 2013, I blogged about how we could possibly get free medical insurance in Singapore. I shared my own experience and how things have worked for me. The beauty about the method I shared is that it is risk free and, therefore, stress free.
You don't know what I am talking about? Then, you might want to read this first:
How to get free medical insurance in Singapore?
Of course, there is some concern with how the annual premium which we pay for our H&S (hospitalisation and surgical) insurance will increase as we grow older. This means that the cost of coverage will become more expensive over the years with annual cost exceeding $2,000 as we age into our 60s in some cases.
This is one reason why I am quite happy to have the government increase the limit for the Medisave Account (CPF-MA) which pays 4% per annum, risk free. Having more money in my CPF-MA means receiving more in interest payment.
Last year, I received $1,760.35 in interest payment for money in my CPF-MA. The year before that, I received $1,654.48. That is an increase of more than $100. However, withdrawal to pay for my H&S insurance remained at $665.00. So, I have some surplus.
If the MA ceiling is raised year after year, I should have more surplus in my MA year after year too. This means that funds in my MA earn more interest to pay for the higher insurance premium that is bound to come as I enter the next age bracket and the next and so on.
So, the argument that even this method will not ensure that we get "free" medical insurance in our golden years is weakened. In my 60s, I would probably have to pay more than $2,000 annually for my H&S insurance. Last year, I already received $1,760.35 in interest payment. With the MA's ceiling raised annually, could I see more than $2,000 in interest payment eventually? I cannot say for sure but, everything else remaining equal, I think so.
Of course, by having the maximum allowed in my MA now while I am younger, I will enjoy plenty of surplus as I receive the maximum in interest payment while paying relatively lesser for my H&S insurance. The surplus amounts to a few hundred dollars each year, in fact. It is like receiving more money now to pay for the higher cost of insurance in our old age.
If you worry about the high cost of health care in Singapore, you should get yourself covered with a good H&S insurance policy. If you worry about the cost of insurance escalating as you age, you might want to max out your MA, letting time and the government help you accumulate the funds to give you free medical insurance that so many say we do not have in Singapore.
Enhanced Incomeshield (H&S) for my mom.