“MediShield Life” is a much talked about topic among Singaporeans and PRs today. It is the new national health insurance scheme, providing wider protection than MediShield. And, it affects all of us.
Please do not treat this Post as a discussion of right or wrong. This discussion is for sharing and understanding. Do not use URLs. Copy and paste text may be deleted from comments. Let’s share based on our knowledge and understanding of MediShield Life.
What is MediShield Life, how different it is compared to MediShield, What it covers, What it costs, When is it effective, and How to register for MediShield Life?
How does it affects private insurance premiums? Etc …
If you are stating a point of fact, and you are sharing information from an insurance organisation, hospital, CPF or govt-related organisation, please indicate the organisation you work for. We should minimise rumours and inaccuracies in this discussion.
Members, please feel free to ask the floor; and please feel free to share your understanding too.
Terence Seah (Moderator)
All of us would have received a letter from MOH explaining about the upcoming Medishield Life policy. There is also a page of answers to frequently asked questions (FAQ).
All information relating to Medishield Life is explained in the information sheets sent to us. However I would like to highlight a point which I feel some people may have overlooked.
1. The transitional subsidies for the first 4 years of the Medishield Life take care of 90%,70%,40% and 20% respectively of the premium INCREASE we have to pay. This means that after the 4th year, there is no more subsidy and we have to pay the FULL premium from the fifth year onwards. Hence the transitional subsidies are given just to sweeten the transition to this new Medishield Life policy with its HIGHER premiums.
It is therefore to our benefit to find out if we are eligible for the “Lower-to Middle Income” subsidies. The letter tells us how to do it.
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This image is clearer than the earlier one.[image=medishild2 001.JPG]
If one has other insurance eg from NTUC and Great East Eastern, how is MediShield Life affect. Can you explain simply what should we do?
Terence Seah
OK Terence, you got me.
There is no direct answer to your question “what should we do” cos it’s up to the individual’s preference for the kind of benefit that he/she wants to receive when there is a claim. Medishield Life coverage is for class B2/C hospitalisation and those who want B1/A class will buy an additional shield plan, eg. NTUC Incomeshield, AIA Healthshield, GE, Prudential, Aviva. Except for one shield plan (strange), all shields give you lifetime coverage.
What’s welcome about Medishield Life is that it covers all pre-existing conditions, except for some exclusions which are not the usual kind of “sickness” one will get eg. alchoholism or drug addiction, cosmetic surgery, sex change operations, amongst others.
The premium for the private shield for my plan increases by about $200 – $250 from age 61 years whereas the quantum is lesser when you are younger: Eg:
(a) $360 p.a. for age group 41-50 years
(b) $511 p.a. for age group 51-60 years ($151 increase)
(c) $763 p.a. for age 61-65 years ($252 increase)
(d) $1017 p.a. for age 66-70 years ($254 increase)
Premiums can be paid from Medisave in full when you’re younger but partially when you reach 75 years of age.
If you live to a ripe old age of 80, your premium will be $2027 p.a. but the cap on Medisave withdrawal limit is only $1,000. So you got to come out with your hard earned cash of $1027 from your own pocket (urgh!).
I’m not an insurance agent but as a policy holder of a private shield plan bought long time ago, I follow up on this from time to time.
I’ve been mulling over whether I should give up my private shield plan when Medishield Life kicks in, cos there are so many what if’s.
According to information from MOH website, “60% of Singaporeans have Integrated Shield Plans but many do not end up staying in the wards that their coverage entitles them to.” So why give up our entitlement?
Hi Terence
Here is the reply from the FAQ regarding your question.
“When Medishield Life starts, you will be covered for any pre-existing conditions that may be currently excluded from your private insurance plan. You will continue to pay the premiums for the Medishield Life part and the additional private insurance part together, which you will be notified of by your private insurer. You will also be eligible for premium subsidies for the Medishield Life portion of your premium.”
There is another question in the FAQ regarding duplication of coverage by Medishield Life for people with private health insurance. MOH assures there would not be any duplication in coverage.
Hi Susan,
Would you call NTUC IncomeShield a private premium? If we are thinking of giving up private premium, eg NTUC IncomeShield, can we then switch to MediShield Life?
Has anyone considere this option? What is the advantage or disadvantage?
Terence Seah
Hope to constribute as a guide :
Medishield & Medishield Plus were started by CPF Board as a captive insurer. It was then given to NTUC Income and Great eastern to provide coverage. We were told to select one insurer. Initially ,both insurers covered basically Medishield,but later evolve to add additional covers with additional premiums and became what today known as Intergrated Shield Plan.
MediShield Life policy is actually an improved version of MediShield with extended cover for life. So, when the policy come into effect from end 2015, and if it serve your requirement, then, you don’t have to spend additional premium to buy the Intergrated Policy.. Your Insurer will advise you on the extended premium that will be provide additional cover on top of your MediShield Life Policy .
So, relax, lets see the details of the Medishield Life Insurance B4 we act.
For members information, I am a current holder of MAS ‘s M6,M9,M9A ,Health Insurance and General Insurance. I am not attached to any Insurance Company. I may consider to be a Independent Financial Advisor if I have nothing better to do.
If you need professional Advice , buy dinner.
Hi Leon,
Your was a good clarification. I thought that MediShield Life is already in place. I didnt know the details will come out only end of 2015.
But, I dont think so, as I have already seen advertisements in the papers trying to explain the workings of MediShield Life. And, I read of talks about adventages and disadvantages.
In fact, I think many Singaporeans have already selected one of the MediShield Life options some years ago.
I am confused.
Terence Seah
Hi Terence,
I do not know whether you are acting blur OR you had misread or misunderstanding the NEWLY created MediShield LIFE to replace the existing MediShield.
There are advertisement stating the advantages
(a) cover more larger hospital Bill – the question is HOW MUCH ? the limitation.
(b) Cover some outpatient’s dialysis N Chemotherapy- What is the limitation ?
(c) Cover for life
Are these extended coverage justify the premium ? -NO DETAILS
Many Singaporeans & PR had selected one of the 5 Medishield Plan BUT NOT THE “MediShield Life ” . For MediShield Life – you donot have to select. You are ( Sporean N PR ) automatically cover by end 2015. Meanwhile keep your current Health Insurance Plan in case you need claims between now and end 2015.
Terence,
Where r u ? With some beauties, in your dream land.
The guy who wrote is Tony Ang not Leon. Hehe
I think probably u mixed the MedicSh with CPF Life. Nowadays, everything they termed with ‘life’, Great Eastern Life, Haha
Iyo Terence must be flying from the North Pole to the South Pole – got jet lag lor that’s why he got Medishield Life mixed up with CPF Life and got Tony’s name mixed up.
Traveling also so much away from home, that’s why you’re so blur sotong……
Thanks SusanT,
Yes, I have got myself muddled up with Medishield Life and CPF Life.
So, now I got it. I thought IncomeShield is an extension of MediShield. Never mind, maybe one day, I will get myself sorted out.
Terence Seah
You are not alone, Terence. Medisave, Medifund, Medishield, Medishield Plus, Eldershield, Incomeshield, CPF Life and Medishield Life (anymore?). HOW not to be muddled up? I have to look for Medicine to ease my headache. Thanks Tony for shedding some light.
DC
Hi Terence,
To answer your queries:
1. NTUC Incomeshield is a private shield plan or the “Integrated Shield Plan (ISP)”.
2. NTUC Incomeshield (and all other private shield plans) is an extension of MediShield (successor Medishield Life). So there are two components. First you are paying CPF Board for Medishield premium and top up to pay NTUC for Incomeshield but the whole scheme is under the umbrella of Incomeshield.
And you can downgrade from an ISP to Medishield anytime. But moving to a higher plan again will depend on whether you have any pre-existing medical problems that will result in exclusions in your coverage and the older you get, the more difficult it will be to change to a higher plan. It’s very often said that you should keep your ISP if you are already suffering from a serious long-term ailment or if you are a diabetic with a high potential for kidney failure.
But I’m curious – Why is it that 60% of Singaporeans have Integrated Shield Plans but many do not end up staying in the wards that their coverage entitles them to”? Therefore why are we paying a high premium for the ISP but not using our entitlement? Isn’t that wasteful? Might as well not buy the ISP and just have Medishield only – it’s cheaper.
I have been thinking about it too but personally I’d be concerned with the high out-of-pocket expenses that I have to bear when I see my doctor after my discharge as a private patient, eg x-ray, blood tests and physiotherapy. And it’s not cheap – one short 30-minute session of physiotherapy can set you back by $55 – $75 and the doctor’s charge of nearly $100.00 at the private clinic. This therefore could be the reason why many people do not stay in the wards that they are entitled to. So downgrade to Medishield and pay much lesser? But you have to contend with lower quality and slow service.
According to the Straits Times report today “the best thing to do is to hang on to your current plan for one more year. When MediShield Life is launched, the IPs will revise their premiums. By early next year, the picture will be clearer and you can then decide on the best scheme for you and your family.”
After reading the ST article yesterday, I realise that the downside is that we have to foot the first $1,500 – $3,000 of the hospital bill, depending on your plan (deductible &;co-insurance) – something like excess clause for motor insurance. Depending on the degree of illness, if not so critical and the total cost of hospital stay is below the “excess”, insurance won’t pay. So for every hospitalisation cost of that smaller quantum you’ll have to pay. So buying an ISP is not of any use. But who knows one may suddenly be diagnosed with a critical illness eg cancer or heart attack, then you will not regret buying an ISP.
For many of us, Medical coverage is important as it is an expensive expensive, should we be hospitalised. Today, I read that MediShield Life coverage will start on Nov 1, and the universal healthcare insurance scheme will kick in for all Singapore residents on or after this date.
Please share what you know, and if you have some questions if you like to ask fellow members, please feel free.
Please do not copy and paste from any website.
Terence Seah