REVISION TO ANNUAL VALUE THRESHOLDS FOR MOH SCHEMES FROM 2025

1.               To ensure that the Annual Value (AV) thresholds used for means-testing continue to provide support for the majority of Singaporeans, the Ministry of Finance has announced on 29 November 2024 that the Government will increase the second tier of the AV thresholds.

2.               The following changes will take effect from 1 January 2025.

3.               The Ministry of Health uses residential property AV in conjunction with Per Capita Household Income for means-testing or as a proxy of means for individuals with no household income. This determines the amount of subsidy or financial assistance that individuals can receive for healthcare services and/or schemes.

4.               The revised second AV tier will be used to determine individuals’ subsidy or assistance eligibility for the following healthcare schemes:

a.     Specialist Outpatient Care (SOC) service subsidy

b.     Drugs subsidy at inpatient, SOC, and polyclinic settings  

c.     Community Health Assist Scheme (CHAS) subsidy 

d.     MediShield Life premium subsidy

e.     CareShield Life premium subsidy

f.       One-off MediSave Bonus for Young Seniors and the Merdeka Generation with lower MediSave balances (in 2025)

5.               Any change in subsidy or assistance arising from the AV changes will be automatically extended to the healthcare schemes. Existing CHAS cardholders who are eligible for a CHAS card with higher subsidies after the AV refresh will be automatically issued with new CHAS cards after 1 January 2025. No action is required from individuals.

6.               Individuals who face difficulties with their healthcare bills after government subsidies may approach their healthcare providers for assistance.

ANNEX

Illustration of the Use of Annual Value (AV) in Determining Eligibility for Healthcare Schemes

Example 1: Specialist Outpatient Clinic Subsidy

Eligibility criteria and benefits in 2024

¹ AV of residential address is used for means-testing for households with no Per Capita Household Income.

Eligibility criteria and benefits in 2025

Worked example of benefits in 2024 and 2025

In 2024, an eligible patient with no household income would be means-tested based on their residential property (e.g. small private condominium with 2023 AV of $26,000). As this is above the second AV tier of $25,000, he/she would have received 30% subsidy for when seeking subsidised care at public Specialist Outpatient Clinics (SOC). 

In 2025, if the individual’s PCHI remains unchanged (i.e. PCHI = $0) and his/her 2024 AV increases to $28,000 (i.e. within the revised second AV tier of $21,000 < AV ≤ $31,000), assuming other eligibility criteria are met, he/she will receive a higher subsidy of 50% for his/her SOC attendance.

If the AV thresholds had not been revised, this individual would still have received the lower subsidy rate of 30% in 2025.

Example 2: MediShield Life Premium Subsidy

Eligibility criteria and benefits in 2024

Eligibility criteria and benefits in 2025

*MediShield Life premium subsidies differ across age groups

Worked example of benefits in 2024 and 2025

In 2024, an eligible individual aged 30 with monthly PCHI of $1,500 and who stays in a residential property (e.g. small private condominium) with 2023 AV of $24,000 (i.e. within the second AV tier of $21,000 < AV ≤ $25,000) would have received MediShield Life premium subsidies of 15%.

In 2025, if the individual’s PCHI remains unchanged and his/her 2024 AV increases to $27,000 (i.e. within the revised second AV tier of $21,000 < AV ≤ $31,000), he/she will continue to receive MediShield Life premium subsidies of 15%, assuming all other eligibility criteria are met.

If the AV thresholds had not been revised, this individual would not have received MediShield Life premium subsidies in 2025.