Medisave Whats that.

You will be surprise many people think that medisave is all the need to have to cover all their medical expenses.
One thing i have to thank the Singapore government is the creation of the CPF and medisave. The system forces us to save first then spend.

Back to medisave, how are the funds accumulated?
In Singapore, as long as you work in a corporate job, you and your employer will contribute 33% of your pay to your CPF account. Out of this 33%, depending on your age, around 6% will go to your Medisave(age 35 and below).

If you earn about $2500 a month, that's about 150 bucks going into the medisave. A year that will amount to $1800. It will earn interest about 4%. Not bad.

What can this money be used?

Medisave was introduced in 1984 to help Singaporeans pay for their hospitalization expenses. Over the last two decades, it has helped Singaporeans build up significant savings for their healthcare costs, especially in old age when medical expenses are expected to increase.

As Medisave is designed primarily to help lower-income Singaporeans pay for their Class B2 and C hospitalizations, the various Medisave claim limits have been pegged to Class B2/C rates. This has served us well for many years. Today, more than 90% of Class B2/C bills can be fully covered by the Medisave withdrawal limits.

But do take note, Medisave is a savings program. This means it is exhaustive. It means it will run out. The current ceiling is $32,500. Minor illness it should be enough. But for major and long term illness.... I cant say it is enough.

how much can be drawn? Click here.