As said for most Singaporeans,
"its more costly to be sick than to die." A very sad truth as medical costs ever increase each year.
What are hospital plans?
They are insurance plans meant to cover expenses from inpatient stays. Nowadays most hospital and surgical plans cover some outpatient costs like kidney dialysis and even some mental treatment. Their features change periodically over time as the needs of the people change. Plans in Singapore are very different from plans available overseas.
Everyone has the basic..but its not enough
Medisave and Medishield. Something everyone has but most of my clients initially will tell me.
"Oh I have insurance already."
When I probe deeper by asking
"Is it pay by CPF or cash?"
"Its CPF la.."
That is medishield and medisave in the workings.
Every Singaporean will have one unless he/she explicitly opts out of the plan.
NTUC Income, GE, AIA, Prudential and AVIVA have medishield plans available. The plans are designed to follow guidelines as set by the CPF Board. Each company also offers enhancements that will enhance the coverage of the basic plan. Some offer more complicated ones, others simple ones.
Its difficult to look thru all and say that 1 of the plans is definately the best. Enhancements are usually paid using cash and not CPF. Premiums are generally very low, even for the enhancement anyone below 30 should be paying less than $150 a year. Thats about $10 per month. Some plans even offer free coverage for children till 21 as long as both parents get it.
But will they really wipe away all your inpatient bills? - Afraid Not all. There are 2 portions of the medical bills that need to be taken care of by the patient and the family. 1. Deductible 2. Co-Insurance Why such a system? Guidelines in medical insurance have stated that medical insurance should be used to re-inburse the costs of going to the hospital, however the user should bear a portion of the bill.
The Deductible
A certain amount to be paid by the insured in the year regardless of the medical bill. The deductible will return to its original amount in the next year. Under the Medishield Plan that everyone has if no H&S plan has been bought:
| Ward Class | Day Surgery | |
| Class C | Class B2 & Above | |
| $1,000 | $1,500 | |
An Example of co-insurance
For example, if you are a C-class patient with an $8,000 amount eligible for claim*, you will first pay the deductible of $1,000.You then pay 20 per cent on the next $2,000 ($400); 15 per cent of the subsequent $2,000 ($300), and 10 per cent of the rest of the bill ($300). This works out to $2,000 that you have to pay, with MediShield paying the other $6,000. The $2,000 can be paid using your Medisave.
*The amount eligible for claim is computed as the lower of either the actual patient bill, or the sum of the claimable limits (e.g. $250 a day).
What is your priority in choosing which hospital plan to buy?
1. Full coverage or partial, do you want your deductible and co-insurance to be taken care of? Government policies do not cover fully as they encourage everyone to take their own responsibility. Commercial plans cover in full.
2. Budget and coverage - Do the plans offer as charged under each item? Some plans have limits to how much you can claim for an individual item in the bill. Lifetime limit and policy year limit, are these high enough to meet today's rising medical costs?
If you want a good break down, I can help you access your priorities and give you a recommended solution. Do give me a call or drop me an email enquiry.
