We refer to the article “Healthcare system focuses on cost effectiveness: Gan Kim Yong” (Straits Times, Mar 28). http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_782591.html
Further to our article “What is the accumulated surplus in MediShield?”,
a reader, D Tan Lip Hong sent the following MediShield statistics to us:-
“These are the numbers we managed to get from CPF Board annual reports with regards to the MediShield account:
Table 9. CPF Board MediShield Account Annual Profit & Accumulated Reserves 18,61
| MediShield | Premiums collected ($000) | Claims paid out ($000) | MLR | Administrative costs ($000) | Administrative costs (as % of Premiums) | Profit (conventional, excl interest earned) ($000) | Percentage Profit (conventional, %) | Investments & Interests ($000) | Accumulated MediShield Reserves ($000) |
| 2008 | 302851 | 160653 | 53.05% | 9526 | 3.15% | 132672 | 43.81% | -172515 | 205324 |
| 2009 | 372132 | 214642 | 57.68% | 9379 | 2.52% | 148111 | 39.80% | 139133 | 504288 |
| 2010 | 385563 | 248615 | 64.48% | 12618 | 3.27% | 124330 | 32.25% | 54049 | 530110 |
| Average | 58.40% | 31523 | 38.62% |
18. CPF Board 2009 Annual Report. Section 21.1 Changes in Insurance Fund balances.
http://mycpf.cpf.gov.sg/NR/rdonlyres/020C9CC2-4DC3-4632-99F7-7C4ED3C44DA9/0/Financials.pdf
- Central Provident Fund Board. Finanacial Statements. Year ended 31 December 2010. http://mycpf.cpf.gov.sg/NR/rdonlyres/703B9E3C-995F-4C84-9368-AD6CD707D957/0/Financial_Statements.pdf
With best regards,
Dr Tan Lip Hong”
We will summarise briefly the statistics as follows:-
Accumulated MediShield Reserves grew from $205 to $530 million, from 2008 to 2010, an increase of 158%.
MediShield Premiums collected was $302, $372 and $386 million, against Claims paid out of $161, $215 and $249 million, for 2008, 2009 and 2010, respectively.
The MLR (Loss Ratio) was 53, 58 and 65%, respectively.
After including Administrative costs (as % of Premiums), the Profit (conventional, excluding interest earned) was $133, $148 and $124 million, respectively.
The Percentage Profit (conventional, %) was 44, 40 and 32%, respectively.
The MediShield Fund’s Total Assets (before Total Liabilities) was $1.2, $1.4 and $1.6 billion, respectively.
This is an increase of 39% for the two years, from 2008 to 2010.
Total Liabilities was $943, $860 and $1,062 million, respectively.
Alex Lew
Leong Sze Hian
