CPF insider’s comments on MediShield Life?

My CPF insider, ES, sent the following to me, which I am publishing with his permission:

Hi Sze Hian,

MediShield Life
1. This is a no opt-out scheme and everybody has to pay, including children, elderly (not pioneer generation who qualify) and the unemployed, etc.
2. Most or all Singaporeans are CPF members, but many of these are just shells (more than 1.6 million inactive CPF members).  So, who pays for them?
3. Members of a household pay different premiums to Medishield depending on the household income. So if the husband is the bread winner, he has to pay for everybody?  Does it mean that he will have to fork up more or less 300% or more of what he may be paying now?
4. Can this be considered as an implicit tax? – since this is compulsory.
5. With this amount to Medishield (from CPF) – will it further erode the possibility of attaining the Minimum Sum (currently $155,000) – even for the middle income group? (Note: Contributions in excess of the Medisave Minimum Sum are transferred to the Special Account – and thus helps to meet the Minimum Sum)
6. Very puzzling, did the Government cover these explanations?

Thank you very very much.

Best Regards


Leong Sze Hian

P.S. Come with your family and friends to the 3rd Return Our CPF – HDB protest on 23 August 4 pm to 6.30 pm at Speakers’ Corner https://www.facebook.com/events/648543138548193/

About the Author

Leong Sze Hian has served as the president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), Hotel Mumbai (associate producer), invited to speak more than 200 times in about 40 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of 2 countries. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.