Understanding the Basic Healthcare Sum (BHS)
The Basic Healthcare Sum (BHS) in Singapore's CPF system estimates the savings needed for basic subsidised healthcare in old age. It acts as a cap on your MediSave Account (MA) balance, ensuring contributions are directed elsewhere once the estimated sum is met. The BHS is adjusted annually for members under 65, reflecting medical inflation and rising healthcare costs. Once a member turns 65, their BHS is fixed for life.
How the BHS is adjusted
For members below 65, the BHS is updated yearly. Upon reaching 65, the BHS set in that year becomes the permanent cap.
The 2025 BHS: Key Figures
The BHS for 2025 has been set at $75,500, an increase from $71,500 in 2024. This amount applies differently based on age in 2025:
- Below 65 in 2025: Your BHS is $75,500 and will be adjusted in future years.
- Turning 65 in 2025: Your BHS is fixed at $75,500 for life.
- Aged 66 and above in 2025: Your BHS was fixed when you turned 65 and remains unchanged.
Historical BHS Comparison
The BHS has increased over recent years to keep up with healthcare expenses:
| Year | Basic Healthcare Sum (BHS) |
|---|---|
| 2025 | $75,500 |
| 2024 | $71,500 |
| 2023 | $68,500 |
| 2022 | $66,000 |
How the BHS affects your MediSave account
Reaching the BHS limit means further mandatory MediSave contributions are redirected. These excess contributions go to your Special Account (SA) or Retirement Account (RA) if over 55. If those are also full, funds flow to your Ordinary Account (OA). Voluntary top-ups cannot exceed the BHS; any excess amount will be refunded. The CPF system calculates the maximum allowed top-up.
Strategic planning for your healthcare needs
Managing your MediSave effectively requires understanding your BHS and contributions:
- Check your balance: Monitor your MediSave balance via the CPF website to see your progress towards the BHS.
- Consider top-ups: If below the BHS, voluntary contributions can boost your healthcare savings and may offer tax relief.
- Know MediSave uses: Be aware of what MediSave covers, such as MediShield Life premiums, hospitalisation, and approved outpatient treatments.
- Plan long-term care: Explore options like CareShield Life and its supplements, which can also use MediSave for premiums.
MediSave vs. other CPF accounts
Each CPF account has a distinct purpose: OA for housing and education, SA for retirement savings (or RA after 55), and MediSave for healthcare. The BHS mechanism ensures a balanced approach, channelling funds to retirement savings once healthcare needs are estimated to be met. Members 55 and older also earn higher interest across their CPF accounts.
Conclusion
Knowing what is the CPF basic healthcare sum for 2025, set at $75,500, is crucial for planning your healthcare finances, particularly as you approach age 65. The BHS serves as a target for basic healthcare savings. By tracking your MediSave balance and understanding how contributions are managed around the BHS, you can make informed decisions for long-term financial security and peace of mind regarding healthcare costs.
Learn more about your CPF accounts and benefits on the official CPF Board website.
