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3 Myths To Debunk About MediShield Life

With MediShield Life, should we cancel our existing private hospitalisation plan bought earlier on? Better hold on to that thought.

 

MediShield Life will kick off from November 2015, with the main objective of ensuring that all Singaporeans have access to basic health insurance, regardless of their age or pre-existing conditions.

Since this is the first type of compulsory health insurance being introduced to Singaporeans, there have been quite a fair bit of coffeeshop chatters about it. Not all of which, we like to add, are accurate.

Below are some of the myths that we have been hearing about which we would like to debunk.

Myth 1: With MediShield Life, we should cancel our existing private hospitalisation plan bought earlier on. 

Hold on to that thought first.

Before you cancel any of your private insurance plans, give your insurance agent a call first to see if you have purchased a plan which will work hand in hand with the MediShield Life starting 1st November 2015.

If you have purchased any of the products stated below, you have already gotten yourself an Integrated Shield Plan.

Screen Shot 2015-09-15 at 12.25.32 am

Is there really a need of an Integrated Shield Plan? Refer to the next point.

Myth 2: Does it mean that like private insurance, I can only claim from either MediShield Life, or my privately purchased hospitalisation insurance?

There are instances in the past where some consumers somehow purchased two different hospitalisation plans from two different insurance companies, only to realise that they can only make their claims through one policy.

This however, is not the case with MediShield Life. Put simply, private hospitalisation plan (also known as Integrated Shield Plan) is a complement to MediShield Life. It is a premium insurance plan, which provides additional coverage on top of the basic coverage that MediShield Life gives.

Two factors are taken into consideration pertaining to the need for an Integrated Shield Plan.

Firstly, MediShield Life provides coverage of up to B2 or C class wards in public hospital. If you think this is sufficient, then MediShield Life is good enough for you. However, if you prefer to be covered for your stay in a A or B1 class wards, or may require coverage in private hospital, then a private integrated Shield plan is recommended.

The second point to consider would be the affordability. An Integrated Shield Plan would cost more due to the higher level of coverage it provides. For younger people, this cost may just be a couple of hundreds per year. However, as a person becomes older, the cost to continue coverage will increase. This can be up to a few thousand dollars per year at old age. Because of that, most people would choose to give up their private coverage as they become older.

Myth 3: MediShield Life is not much different from the old MediShield, other than the fact that it covers you for a lifetime. 

Partially true. However, MediShield Life also provides better coverage where a person will also pay less from the overall bill accumulated.

For example, a patient below the age of 60 who is warded into a Class C ward with a medical bill amounting to $9,000 and with all expenses within the claim limit.

Medical Bill of SG$9,000

Under MediShield Life

First

SG$0 to SG$5,000

From

SG$5,001 – SG$10,000

Deductible for ward C

Patient pays 10% of the amount

Patient pays 5% of the amount

SG$1,500

SG$ 3,500 x 10%

SG$4,000 x 5%

Patient Pays

SG$1,500

SG$350

SG$200

In this case, the patient will only pay $2,050 from his total bill of $9,000. This $550 can be paid either by cash, or through the person’s Medisave.

If you follow the old MediShield system, the patient will have to pay $2,500. So there is definitely a significant difference.

In short, MediShield Life is definitely beneficial to most Singaporeans and worth knowing about. If you have questions about your health coverage and just how much coverage MediShield Life would provide, we strongly recommend that you pick up the phone and give your insurance agent a call to find out more. They will be glad to hear from you.

 

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