About this article:
- Introduces MediShield Life and Integrated Shield Plans (IPs)
- Highlights the limitations of MediShield Life and how an IP can complement it
- Dispels common myths about IPs
When it comes to health insurance in Singapore, the most common terms that get bandied about are MediShield Life and Integrated Shield Plans (IPs) — these two work hand-in-hand to provide coverage for your medical costs in Singapore.
MediShield Life is the basic health insurance plan that all Singaporeans have. However, it alone is insufficient to cover major hospitalisation costs.
That’s where IPs come in. An Integrated Shield Plan is additional hospitalisation insurance offered by private insurers that provides more coverage than MediShield Life. It covers a person’s stay in private hospitals and higher class wards, from B1 and above, in public hospitals.
Around 70% of people in Singapore have an IP. Still, surprisingly, recent data from the Central Provident Fund (CPF) Board revealed that 57% of those who pay for IPs chose to stay in subsidised wards instead of the private care their insurance covers.
The reasons for doing so may vary due to common misconceptions and confusion about insurance coverage and private healthcare costs.
This article will explain how IPs can cover the costs of private hospital care.
What Coverage Does An Integrated Shield Plan (IP) Provide?
An Integrated Shield Plan comprises:
- MediShield Life: Provides basic protection for public hospital stays in B2 or C wards.
- Private insurance component: Enhances coverage for higher-tier wards (A/B1) or private hospital stays, offering more comfort and access to a wider range of treatments.
It provides coverage for:
- Claim limits of up to $1,500,000 annually.
- Coverage for various procedures, surgeries, and treatments that may not be covered under MediShield Life.
- Pre- and post-hospitalisation coverage, including follow-up consultations and diagnostic tests.
Common Misconceptions About Integrated Shield Plans
Myth 1: IPs are expensive
Given the recent news about how IP premiums are expected to increase due to the review of MediShield Life, it may sound like IPs are costly to buy, which may lead to many forgoing buying them.
However, IP premiums will only increase as you age. That means it’s better to buy an IP now rather than a few years later because doing so means it will cost you more.
Myth 2: IP premiums must be fully paid for in cash
News flash: You don’t have to pay the full amount of your IP premium with cash. Part of your IP can be paid with MediSave, which ranges from $300 – $900 depending on your age, to help reduce your costs.
Myth 3: IPs are insufficient for private hospital bills
IPs provide coverage for Class B1 and A wards in private hospitals. Adding a rider covers part of your bill’s co-payment portion and deductible components. This means you pay at most 5% of the hospital bill, regardless of which ward class you stay in. The co-payment is capped at $3,000 if you have pre-authorisation with your insurer and you go to the specialist on your insurer’s panel of clinics. You may also offset how much you have to pay if you use MediSave or your corporate insurance.
How an Integrated Shield Plan can cover the gaps of MediShield Life
While MediShield Life is designed to help subsidise some healthcare costs, it does not cover a full hospital bill.
According to CPF, “the maximum claim limit per policy year is $150,000 with no lifetime limit on the amount you can claim from MediShield Life. You will have to pay the portion of the bill above the claim limit.”
That’s why many people get an IP to cover the gaps in MediShield Life. An IP also offers more benefits, such as providing coverage for stays in Class B1 and A, so you will benefit from staying in a more comfortable ward.
It also covers additional costs beyond MediShield Life’s claim limits for various hospitalisations, day surgeries, outpatient treatments, and deductibles, reducing your out-of-pocket expenses.
How to Ensure You Are Adequately Insured for Private Healthcare
Begin by reviewing your existing health insurance coverage. Check if that policy you bought years ago is an IP. If you already have one, review your current IP’s coverage limits, sub-limits, and exclusions. Make sure you understand your plan’s co-payment structure and deductibles.
Evaluate your healthcare needs. Have you had a health screening recently? Anticipate your future medical needs based on factors such as age, family history, and lifestyle. Consider whether your plan covers likely medical expenses, such as specialist treatments or long-term care.
Consider adding riders to your IP. Riders are add-ons to IPs designed to help reduce out-of-pocket expenses and can help cover co-payments and deductibles. These can be crucial in ensuring comprehensive coverage for private healthcare. Most new riders you buy only require you to pay 5% of the hospital bill.
If you’re still unsure, you can consult a financial advisor or insurance professional to help you make informed decisions and tailor your coverage based on your unique healthcare needs.
Know Your Coverage Before You Need It
Review your IP regularly to ensure that it still meets your healthcare needs. With policy changes widely published in the news, it is easy to stay up to date with new changes implemented by the Ministry of Health and speak to your financial advisor.
If unsure what your coverage is, check out our handy health insurance coverage checker.
As healthcare costs rise, proactive steps such as evaluating your coverage, adding riders, or seeking professional advice ensure that you are well-covered for private healthcare in the long term.
