Is Your Health Insurance Coverage Ready for the Future?

Singapore is a fantastic place to live, but let’s face it — the cost of living isn’t getting any cheaper. One area that often sneaks up on people is healthcare. Whether you’re in your 30s or 40s, navigating the rising cost of medical care can feel overwhelming. Healthcare inflation in Singapore isn’t just a buzzword; it’s a very real issue. According to the WTW Global Medical Trends Survey, medical insurance costs are projected to rise by 12% in 2025. And that’s not the only increase. MediShield Life premiums are expected to go up by as much as 35% starting April 2025.

The big question is: is your health insurance ready for what lies ahead?

If you’re unsure, you’re not alone. With the cost of medical treatments climbing, it’s essential to review your current coverage and consider whether it’s sufficient to safeguard you and your family against future healthcare costs.

A Quick Guide to Health Insurance Coverage in Singapore

Before diving into why you should review your coverage, let’s take a moment to recap the essentials of health insurance in Singapore.

What Is Health Insurance?

Health insurance is designed to ease the financial burden of medical treatments and hospitalisation. In Singapore, health insurance typically revolves around two main components: MediShield Life and Integrated Shield Plans (IPs). While MediShield Life is a basic safety net for all citizens and PRs, IPs can significantly enhance your coverage and reduce out-of-pocket expenses during medical emergencies.

MediShield Life — The Foundation

MediShield Life is a mandatory health insurance plan managed by the Central Provident Fund (CPF) Board. It covers large inpatient bills, day surgeries, selected outpatient treatments like dialysis, palliative care services, and rehabilitation. Even if you have pre-existing conditions, MediShield Life will cover you.

However, MediShield Life primarily covers stays in B2 or C class wards in public hospitals. If you prefer private hospitals or a higher-class ward, the payout will cover only a small portion of the bill. This is where Integrated Shield Plans step in.

Integrated Shield Plans — Strengthening Your Safety Net

Integrated Shield Plans (IPs) are private health insurance plans designed to work alongside MediShield Life. They offer enhanced coverage, allowing policyholders to opt for better ward classes like A or B1 in public hospitals and even private hospital treatments.

What makes IPs especially valuable is their extended benefits, which can include:

• Pre- and post-hospitalisation consultations
• Diagnostic scans like MRIs and CT scans
• Alternative treatments such as Traditional Chinese Medicine (TCM) with certain riders

IPs also offer higher annual claim limits, which is crucial when dealing with complex or costly medical treatments. Some plans even include access to curated panels of specialists and hospitals.

Why Pair MediShield Life with an Integrated Shield Plan?

Pairing MediShield Life with an IP gives you a robust safety net that softens the financial impact of medical bills. While MediShield Life covers the basics, IPs reduce your co-payment burden and grant access to a broader range of treatments and hospital choices.

Take, for example, an Integrated Shield Plan like Enhanced IncomeShield. It provides coverage of up to S$1.5 million per policy year and enhances cancer treatment benefits for outpatient care. These plans offer peace of mind, especially when you consider the ever-rising costs of specialised treatments and private healthcare.

Paying for your IP is also made easier with MediSave. While there’s an Additional Withdrawal Limit (AWL) on how much MediSave can be used for premium payments, the balance can be topped up with cash.

Understanding MediShield Life vs. Integrated Shield Plans

How To Choose the Right Health Insurance Plan

Choosing the right plan is about more than just picking the most expensive or comprehensive one. It’s about understanding your needs and balancing affordability with adequate coverage.

1. Assess Your Current Coverage The first step is to understand what protection you already have. Whether it’s through MediShield Life, an employer-provided group plan, or an existing IP, knowing the extent of your current coverage helps you identify gaps.
2. Consider Your Healthcare Preferences Do you prefer private hospitals or specific specialists? If yes, a basic MediShield Life plan won’t be enough. IPs offer flexibility and choice, helping you access the medical facilities and doctors you trust.
3. Think Long-Term It’s not just about the present. Healthcare costs will only continue to rise. Make sure your coverage is future-proofed, especially as you age. Consider whether your plan will continue to meet your medical needs in the years ahead.
4. Budget for Riders Many IPs offer optional riders that reduce co-payment and deductible amounts. While these come at an added premium (payable in cash), they can significantly cut your out-of-pocket expenses when medical care is needed.
5. Don’t Over-Insure or Under-Insure It can be tempting to max out coverage, but premiums add up. Similarly, under-insuring to save money can backfire when a major health crisis hits. A well-balanced policy fits your lifestyle, health condition, and financial situation.

Future-Proof Your Health Coverage

Healthcare costs are likely to keep climbing, so now is the time to ensure your insurance is up-to-date. Regularly reviewing your health insurance is as important as maintaining the right amount of savings or investments.

Speak to a financial advisor who can assess your situation and recommend the best combination of coverage and affordability. You’ll be glad you did, especially when you or your loved ones face unexpected medical challenges.