The new MediShield Life and what you need to know about it

Aviva October 29, 2015 15
The new MediShield Life and what you need to know about it

Recently, the Ministry of Health (MOH) announced enhancements to the MediShield coverage for all Singaporeans and Permanent Residents (PRs).  The new scheme will be named “MediShield Life” and will be launched on 1 Nov 2015.

Here are 5 things you can expect from MediShield Life:

 

1.  Coverage for everyone.

MediShield Life will cover all Singaporeans and Permanent Residents, including those with pre-existing conditions.

 

2.  Coverage for life.

Currently, lifetime coverage is offered by private insurers via Medisave-approved Integrated Shield Plans (IPs).  By end of 2015, the MediShield (MediShield Life when launched) component will also be extended to lifetime coverage.  This is good news since we typically require more healthcare as we get older.

 

3.  Increased claim limits.

With rising healthcare costs, the claim limits for MediShield Life will also be increased, helping to reduce the amount you may need to pay by cash or Medisave. But while the claim limits have been increased, there are still limits (you can see some of the limits listed on MOH’s website here)

If you prefer to be covered for the full amount1 that the hospital charges – known in insurance lingo as “as-charged coverage” – as well as enjoy coverage for pre- and post-hospitalisation treatments (which MediShield Life doesn’t cover), then you may consider purchasing an IP from an insurer, such as Aviva’s MyShield plan.

 

4.  Your co-insurance and deductible will still exist.

Deductible – or excess – is the initial amount you need to pay before the medical cost is covered by MediShield Life. It helps to sieve out small claims, which can be paid using Medisave and/or cash, and helps to keep premiums affordable. This will range from $1,500 to $3,000 depending on your age and ward type.

Co-insurance is the percentage of the bill you need to pay to co-share the bill with MediShield Life. This will range from 3% to 10%, depending on your bill size.

You’ll need to ensure you have enough liquid savings to take care of the deductible and co-insurance, in the event of a medical emergency. Alternatively, if you also have an IP, you’ll likely be able to purchase an add-on – also known as a rider – to cover the co-insurance and/or deductible portions of the bill as well, minimising your out-of-pocket expenses.

CoIns&Deductible

 

5.  Medishield Life will continue to be integrated with IPs.

Because they’re integrated, you only need to pay one premium to your insurer for both components – that is, both MediShield Life and the additional private insurance coverage provided by your insurer. You’ll also only need to claim from one party – your insurer – to get reimbursed from both components. From a customer service perspective, this is useful as you’ll only need to liaise with one party; your insurer will then do the legwork to coordinate with CPF for the portions claimable under MediShield Life.

 

So… What’s the role of an IP?

An IP is a Medisave-approved plan made up of two parts: the MediShield Life portion by CPF and additional benefits by the insurer. While MediShield Life will offer greater benefits than the current MediShield, it’s still designed to be a basic healthcare insurance scheme to ensure all Singaporeans can afford it. If you’d like even greater coverage, then you’ll need an IP to cover that.

The additional coverage that IPs offer can be broadly summarised as follows, depending on your insurer and plan type:

♦  “As charged” coverage for most benefits. This means you’ll not be restricted by MediShield Life’s claim limits and all eligible expenses can be claimed.

♦  Higher coverage so you have the option to receive treatment at higher wards or private hospitals, and still be covered for the higher costs.

♦  Higher annual claim limits.

♦  Coverage for pre-hospitalisation and post-hospitalisation treatments.

♦  Option to cover co-insurance and/or deductible with a rider.

♦  Other value-added benefits that your insurer may offer. For example, Aviva’s MyShield offers discounted premiums for your children till age 20 if both you and your spouse are policyholders1.

 

1 Subject to policy terms and conditions.

 

Updated in: June 2017

 

15 Comments

  1. tan@diamond-interntional.com.sg'
    Tan Khim Koon August 26, 2015 at 6:57 pm - Reply

    I understand that by the end of this year 2015 all Singaporean and PR are covered by Medisave life even for pre-assisting illness. May I know what percentage of the bill is covered. I am now 68 years old and worry for the medical expenses should it come up. I cannot depend on my children as they have their commitment to worry, This is my life.

    • Aviva August 27, 2015 at 4:23 pm - Reply

      Hi Khim Koon,

      You’re right – the revised MediShield Life (that will be launched later this year) will cover treatment for pre-existing illnesses as well.

      The claimable amount isn’t determined as a percentage of the bill; rather, it is up till the claim limits, depending on what you’re claiming for. You may want to refer to this link here for more details:
      https://www.moh.gov.sg/content/moh_web/medishield-life/about-medishield-life/medishield-life-benefits.html

      Hope we’ve answered your question! 🙂

  2. lowhuakin@hotmail.com'
    Low Hua Kin September 21, 2015 at 10:21 pm - Reply

    Please advise me AVIVA Medishield IP Plan

    • Aviva September 23, 2015 at 10:06 am - Reply

      Hi Hua Kin,

      Thanks for your interest! We will be emailing you some information shortly. 🙂

  3. Tony.lee@accent91.com.sg'
    Lee Sin Tiam February 24, 2016 at 10:28 pm - Reply

    I have my prostate cancer operated 6 years ago and condition remain stable with low stable PSA level ,
    Am I able to buy private insurance?

    • Aviva March 3, 2016 at 3:22 pm - Reply

      Hi Sin Tiam, thanks for your comment and we’re glad to hear your condition is now stable!

      It’s true that with a history of prostate cancer, you might find yourself uninsurable with most health insurers, including Aviva. But there may still be a chance that you can get coverage for other non-related conditions, depending on the insurer’s assessment.

      You can also find out more about the new MediShield Life, which covers pre-existing conditions, on MOH’s website here: https://www.moh.gov.sg/content/moh_web/medishield-life/about-medishield-life/coverage-for-pre-existing-conditions.html

      Regards,
      Evangeline

  4. davidang48@yahoo.com.sg'
    David Ang May 23, 2016 at 1:53 pm - Reply

    HiIs that coverage mention in our medic Shield?
    The medic shield has two classes. Can we just top up ?
    Please reply.

    • Aviva May 24, 2016 at 6:18 pm - Reply

      Hi David,

      Thanks for your comment – we hope you found the article useful.

      The lifetime coverage for all Singaporeans and Permanent Residents mentioned in the article refers to MediShield Life which is the new scheme launched by MOH in November last year. MediShield Life is compulsory and all Singaporeans and PRs are automatically covered.

      MediShield Life provides coverage regardless of which ward class you choose but the level of benefits is based on the costs in Class B2/C wards in public hospitals.

      If you want additional coverage of bills in Class A/B1 wards or private hospitals, you might want to consider getting an Integrated Shield Plan (IP) which is offered by private insurers. Here’s a video that explains how an IP works with MediShield Life, using Aviva’s MyShield as an example – http://www.aviva.com.sg/money-banter/how-integrated-shield-works-with-medishieldlife/

      We hope this helps. If you need more assistance, one of my colleagues can get in touch with you to advise further.

      Regards,
      Evangeline

  5. baby8820@gmail.com'
    Bibiana June 5, 2016 at 3:57 pm - Reply

    Hi,

    I would like to know how should i upgrade my Medishield Life plan to an IP using Aviva. Please advise. Thanks.

    • Aviva June 7, 2016 at 11:58 am - Reply

      Hi Bibiana, we’ll be in touch with you via email on this. Thanks for your interest! 🙂

  6. wccgene@gmail.com'
    Gene Wong July 10, 2016 at 12:39 am - Reply

    Hi,
    Please advise me AVIVA Medishield IP Plan.
    Thanks!

    • Aviva July 11, 2016 at 2:32 pm - Reply

      Hi Gene, we’ll be in touch with you via email on this. Thanks for your interest! 🙂

  7. 704991813@qq.com'
    wang yue November 30, 2016 at 2:36 pm - Reply

    Hello! May I know that is medishield premium compulsory? Even for students who are not working? Thank you very much.

    • Aviva December 13, 2016 at 4:01 pm - Reply

      Hi Wang Yue,

      Thanks for your comment! MediShield Life is compulsory for all Singaporeans and PR. For more information on MediShield Life, please refer to MOH’s website: https://www.medishieldlife.sg/

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