Talking at the National Day Rally, PM Lee announced some major changes to Medishield.
Medishield coverage will be expanded to include more illnesses and cover citizens for their whole life. Previously, Medishield had stopped at 90 and had excluded certain pre-existing illnesses.
New changes will also see benefits increasing so that patients have fewer out-of pocket expenses.
On the downside, the scheme will be compulsory and it is also likely that premiums will be higher.
However, PM Lee also promised that the government will help those who cannot afford to pay the higher premiums.
Giving an example, he said that for Singapore's Pioneer Generation a special 'Pioneer Generation Package' will be available to help them pay for their Medishield Life premiums. Those who fall into this category are mainly in their late 60s and are retired.
"We must take special care of this pioneer generation in their golden years," he said.
Although PM Lee announced this scheme, he said that the details of the scheme are yet to be finalised. This will occur after the Ministry of Health has had a chance to conduct some public consultations.
Mr Lee also added that the Community Health Assist Scheme will be expanded to allow younger Singaporeans from lower to middle-income families to have access to subsidies for treatments at private general practitioners and dentists. Previously, only those aged 40+ had access to these subsidies.