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Everyone knows what MediShield Life is; a national scheme that helps Singaporeans pay off large hospital bills. It’s the most basic health insurance available to all Singaporeans. Some may even have taken up an Integrated Shield Plan or “IP” for short, a health insurance plan from private insurers in Singapore.
What is MediShield Life?
MediShield Life is a national health insurance scheme that covers all Singaporeans. You need to pay premiums for these, which happen via deductions from your CPF MediSave Account.
MediShield Life’s payouts are pegged at B2/C-types wards in public hospitals plan and will cover only a portion of your bill. If you choose to stay in A/B1-type ward or in a private hospital, MediShield Life will cover only a small portion of your bill.
While MediShield Life does not have any lifetime claim limit, there is an annual claim limit of S$150,000.
When claiming against MediShield Life, you will need to pay (either from your MediSave Accounts or with cash) a fixed amount of the bill before any payout from happens via MediShield Life. This fixed amount is known as the ‘Deductible’ and you need to pay this sum only once in any year that you’re hospitalised. The ‘Deductible’ amount depends on your age and your choice of ward class.
The claimable amount is the amount above the ‘Deductible’ up to the annual claim limit. You need to pay a portion of the claimable amount and this portion is known as ‘Co-Insurance’. The ‘Co-Insurance’ rate is reduced as the claimable amount increases.
What is a Integrated Shield Plan (IP)?
An integrated shield plan or IP is a health insurance plan a private insurer offers you. This type of plan provides additional coverage, such as for non-subsidised treatment in public hospitals or for treatments in private hospitals. An IP consists of two components; the MediShield Life component and the private insurance coverage component by the insurer.
When you take up an IP, you already have coverage by MediShield Life. The insurer which issues your IP acts as your single point of contact and also acts on the CPF Board’s behalf for premium collection and claims disbursement for the MediShield Life component of your IP.
Unlike MediShield Life, most IPs do not cover pre-existing conditions. An application for an IP may result in the pre-existing condition exclusion or the application being rejected entirely.
Should I get an Integrated Shield Plan?
Although an IP provides more comprehensive coverage than MediShield Life, the premiums are more than those charged for MediShield Life. Like many other types of insurance plans, premiums for IPs increase with age.
When taking up an IP and/or an IP rider, consider if it meets your needs and if you can afford the premiums for the long term. It would be sensible to consult with an insurance or financial adviser on this.
Note about Integrated Shield Plans
Starting from 1 April 2023, only cancer drugs under a government-approved list is covered by Integrated Shield Plans in Singapore. all Integrated Shield Plans (IPs) provided by private insurers, whether nnew or renewed, will exclusively provide coverage for treatments listed under the approved cancer drug list.
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Disclaimer: Protected up to specified limits by SDIC. This is only product information provided. You may wish to seek advice from a qualified adviser before buying the product. If you choose not to seek advice from a qualified adviser, you should consider whether the product is suitable for you. Buying an insurance product that is not suitable for you may impact your ability to finance your future financial needs. If you decide that the policy is not suitable after purchasing the policy, you may terminate the policy in accordance with the free-look provision, if any, and the insurer may recover from you any expense incurred by the insurer in underwriting the policy.
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Changes to MediShield Life in 2021: 7 Things to Expect
