1.	What is the objective in getting the self-employed persons to pay Medisave contributions?
2.	Do I have to contribute to Medisave as a self-employed person even though my Medisave balance has reached the current Medisave contribution ceiling?
3.	I already have enough cash for my healthcare needs. Why must I still contribute to Medisave?
4.	I have already bought insurance for myself. Why do I still need to contribute to Medisave as a self-employed person?
5.	I have substantial balances in my Ordinary and Special Accounts. Can I use the available funds to pay my Medisave liability?
6.	What is the approach taken by CPF Board in enforcing Medisave payments from self-employed persons?
7.	Why is CPF Board taking the self-employed persons to court for not paying their Medisave contributions?
1.	What is the objective in getting the self-employed persons to pay Medisave contributions?
	The objective is to ensure that the self-employed persons have sufficient Medisave savings for their healthcare needs. Unlike the employees, self-employed persons do not enjoy company medical benefits. As illness may strike at any time, it is important that self-employed persons build up Medisave savings to meet their medical expenses especially during old age when they have stopped working.
2.	Do I still have to contribute to Medisave as a self-employed person even though my Medisave balance has reached the current Medisave contribution ceiling?
	Yes. Medisave contributions are mandatory and payable by all self-employed persons even though their Medisave balance has reached the current Medisave contribution ceiling. Any Medisave contribution in excess of the prevailing ceiling is transferred to the Special Account for members aged below 55, and to the Retirement Account for members aged 55 and above, who do not meet the CPF Minimum Sum. For those who have set aside the full CPF Minimum Sum, the excess CPF contribution will be transferred from the Medisave Account to the Ordinary Account. This is to help you build up your retirement savings. You can apply to transfer the overflowed portion of the Special or Ordinary Account savings back to Medisave in the event that your Medisave account is exhausted.
3.	I already have enough cash for my healthcare needs. Why must I still contribute to Medisave?
	With rising healthcare costs, it is important to have enough savings for your healthcare needs. Contributing regularly to Medisave will help you build up your savings over your working life. These savings can help you meet your own as well as your immediate family’s hospitalization expenses under unforeseen circumstances.
4.	I have already bought insurance for myself. Why do I still need to contribute to Medisave as a self-employed person?
	Medisave is a form of personal savings for CPF members. It serves as a basic safety net for self-employed persons. Unlike Medisave, private medical insurance plans generally do not have lifetime cover and need to be renewed yearly. The insurer may, for some reasons, also terminate the insurance policy e.g. when an insured ceases to pay premiums. This is likely to be for those in the older group and those with severe illnesses, since premiums tend to escalate under such circumstances. For these reasons, having an insurance cover may not sufficiently meet all your healthcare needs. Thus, private medical insurance complements rather than replaces Medisave. Therefore, even if you have already bought insurance, you still need Medisave.
5.	I have substantial balances in my Ordinary and Special Accounts. Can I use the available funds to pay my Medisave liability?
	The 3 CPF accounts, Ordinary, Special and Medisave Accounts, are for different purposes. While Ordinary and Special Account savings are meant for retirement, your Medisave savings are for your healthcare needs. Thus, the balances in your Ordinary and Special Accounts cannot be used to settle your Medisave liability.
6.	What is the approach taken by CPF Board in enforcing Medisave payments from self-employed persons?
	The Board will enforce payments from the self-employed persons only when they have defaulted on their payments despite repeated reminders. Each year, the self-employed persons are notified by the Inland Revenue Authority of Singapore (IRAS) via the Notice of Computation (NOC) to pay their Medisave contributions in full or by monthly instalments through GIRO. If the self-employed persons do not respond to the NOC, the Board will issue them a Letter of Demand and Offer which requires them to pay up the Medisave liability, together with the payment of the composition amount offered. If there is still no payment, the Board will issue them a Notice to Attend Court. Self-employed persons who are brought to court will face a court fine of up to $2,500 for first time offenders, and up to $10,000 for subsequent offences.
7.	Why is CPF Board taking the self-employed persons to court for not paying their Medisave contributions?
	The self-employed persons are required under the CPF Act to pay Medisave contributions. Self-employed persons who fail to contribute to Medisave are storing up problems for themselves. They will also become a burden to others, should they be hospitalised with not enough Medisave and without MediShield cover. The Board will continue to be flexible towards those with genuine financial difficulties. Self-employed persons could request instalment plans to settle the outstanding amounts over a reasonable period. The Board will only take the recalcitrant self-employed defaulters to court as the last resort.