Can I use Medisave to pay for my Integrated Shield Plan (IP) premiums?

Medisave Usage for Integrated Shield Plan (IP) Premiums

Yes, you can use your Medisave Account (MA) to pay for the basic component of your Integrated Shield Plan (IP) premiums, but not the entire premium if it includes riders.

Coverage and Limits

• MediShield Life Component: Your mandatory MediShield Life premiums are automatically paid from your MA. For individuals aged 55 to 65, this can amount to approximately $28.9k over the period from retirement (age 65) to age 85, based on current figures (CPF Board).
• Integrated Shield Plan (IP) Upgrade: IPs are private insurance plans that upgrade your coverage beyond MediShield Life. You can use your Medisave to pay for the portion of the IP premium that covers the standard MediShield Life benefits. For those aged 65 to 85, the estimated amount covered by Medisave for the IP upgrade component is around $16.5k (CPF Board).
• Riders Must Be Paid in Cash: Any additional coverage or riders attached to your IP (e.g., higher claim limits, coverage for specific treatments not covered by the basic plan) must be paid for using cash, not Medisave.

Medisave Flow and Constraints

Your Medisave contributions (10% of salary for those below 35) flow first to cover MediShield Life and CareShield Life obligations. Once the Basic Healthcare Sum (BHS) is reached (projected at $75.5k in 2025), subsequent contributions flow to your Special Account (SA) or Ordinary Account (OA). You can use the accumulated funds in your MA to pay these premiums, provided the funds are available.

Important Note: While Medisave covers the basic IP portion, the total amount you can use for hospitalization plans (MediShield Life + IP upgrade) from age 65 to 85 is estimated to be around $45k (CPF Board). If your IP premium (excluding riders) exceeds this allocation, the excess must be paid in cash.

For specific details on your premium allocation, you should check your latest CPF statement or consult the CPF Board website.