Are you aware that if you are a Singapore citizen or a permanent resident, you’re automatically covered by MediShield Life? Did you also know that two-thirds of Singaporeans and Permanent Residents have purchased the Integrated Shield Plan?
Integrated Shield Plan & MediShield Life: What’s the difference?
MediShield Life
MediShield Life is a mandatory national health insurance program for all Singaporeans and permanent residents. This is basically an improved version of MediShield that was introduced in 2015, providing improved coverage than MediShield.
MediShield Life offers:
- Enhanced protection and higher payouts which means patients can use their Medisave to cover costly medical care
- Covers all Singaporean citizens and permanent residents, even the elderly and those with preexisting medical conditions
- Offers lifetime coverage
- No claim limit (currently set at$150,000); You can rest easy knowing that your coverage will continue even if you incur high medical costs at a young age
Other advantages, such as daily ward and surgical claim limits, have also improved. In other words, compared to the previous MediShield coverage, MediShield Life is really a significant enhancement.
Integrated Shield Plan (IP)
An Integrated Shield Plan (IP) comprises two parts: the MediShield Life component, administered by the Central Provident Fund (CPF) Board, and a private insurance coverage portion provided by a private insurer.
The MediShield Life coverage is intended for stays in Class B2/C wards of public hospitals. The supplementary insurance coverage provided by the private insurer will give you a higher degree of protection than what is offered by public hospital Class B2/Class C wards.
Some private insurers offering Integrated Shield Plans are listed below:
- AIA
- Singlife with Aviva
- AXA
- Great Eastern
- NTUC Income
- Raffles Shield
- Prudential
Private insurance companies such as AIA, Singlife with Aviva, AXA, Great Eastern, NTUC Income, Raffles Shield, and Prudential are all part of the Integrated Shield Plans (IPs) that provide supplementary health care coverage beyond that offered by MediShield Life. With such plans, you can acquire additional coverage in private and public hospitals with Class B1 or A wards, but in exchange for a more expensive premium than MediShield Life.IPs are similar to the “upsized” version of a meal: you get more for your money and pay more.
However, the introduction of MediShield Life in 2015 has led to some misunderstandings. Let’s clear up some of the most often-asked questions and misconceptions about MediShield Life.
Misconception #1: I feel like the coverage I get from MediShield Life is enough. I should not keep my Integrated Shield Plan cover.
Earlier, we compared the Integrated Shield Plans (IP) to a supersized fast food meal. This is the best analogy, as the main course never changes but only upgrades the food with extra sides. Regardless of the size of your order, the main dish will still be served. If the quantity of your meal remains unchanged, the pricing will also be the same. However, the price will also increase if you upgrade to a larger size.
Similarly, registering in an IP would not reduce your MediShield Life premiums, and you will still continue to pay for it. The additional premium you pay is for the IP’s enhanced coverage. This includes coverage for pre- and post-hospitalization fees, emergency treatment abroad, higher ward rooms, and the opportunity to add riders to cover deductibles and co-insurance. Having an integrated shield plan to cover the cost of medical care while you recover from surgery is a huge relief. But of course, premiums are more expensive than those of MediShield Life because of the plans’ more incredible features.
What are Deductible and Co-insurance?
The deductible is the cost that must be paid before any claims are paid. In comparison, co-insurance is the amount you must co-insure after settling the deductible.
What are riders?
When you file a claim under your Integrated Shield Plan, private insurers may provide riders as supplemental products to pay the co-insurance and deductible components of your bill (IP). Some riders also offer extra benefits if you are hospitalized.
Policyholders must pay separately in cash for riders since they are not MediSave-approved plans.
Misconception #2: The coverage from MediShield Life is substandard
In the same way that you might not need to upgrade your meal if the basic meal is filling enough for you, the additional coverage provided by an Integrated Shield Plan might not be required as well.
MediShield Life provides adequate coverage when you are hospitalized, particularly if you want to stay in a Class B2 or C ward at a public hospital.
Then why do so many diners choose to upgrade their meals? It’s simply because we might enjoy a more extensive lunch with extra dessert and drinks. Similarly, the IPs aim to cover the costs associated with staying in a higher-class ward at a public or even a private hospital in the event of hospitalization.
Keep in mind that you will still be covered by MediShield Life if you wind up in a Class A or B1 ward or if you want to go to a private hospital. Still, you may expect to pay a substantial price because the benefits are based on the expected costs of public hospitals’ Class B2 and C wards.
Misconception #3: MediShield Life's premiums are way too pricey
Although rates had gone up when MediShield Life was launched compared to the old MediShield, many Singaporeans also qualify for subsidies to make up for the increase.
Here are some examples:
Remember that no matter how reasonably priced MediShield Life premiums are, you may pay for it entirely out of your Medisave account. Thus it won’t even affect your cash flow.
Is an Integrated Shield Plan a better option than MediShield Life?
It ultimately boils down to your financial situation and whether or not you can afford the higher premiums of IPs. Are you content with sharing a Class B2 or C ward with others? Don’t you need additional coverage for pre- and post-hospitalization fees, emergency treatment abroad, higher ward rooms, and additional riders to cover deductibles and co-insurance? If that’s the case, you may continue relying solely on MediShield Life.
On the other hand, if you prefer privacy and have more options in some circumstances, like deciding on your doctor and the type of hospital room(air-conditioned or not), and are willing to pay higher rates over time, then you may choose to consider IP coverage.