The Power Of Praise & Worship and The Real Estate In Singapore

The Power Of Praise & Worship and The Real Estate In Singapore
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Saturday, 14 March 2015

Terminating or canceling your Integrated Plan (IP)?


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Integrated shield plan (ISP) provided by private insurer still relevant
- Provide additional coverage
- As charge
- Cover the co-insurance and deductible 
- For those who wish to stay in B1 ward, A1 ward and private hospital 
- Enjoy daily cash benefit when they buy a higher plan and stay in a lower ward.
- If B1 and C wards are fully occupied, those who owned IP are safe to stay at higher wards provided by the IP

New Medishield Life (improve version of medishield), the benefits
- automatically included
- cover for life
- no exclusion to pre-existing illness, loading of 30% for the next 10 years
- no rejection of coverage to pre-existing illness (confirmed acceptance), 
- no waiting period
- eliminated last entry age requirement
- higher claim limits
- removed lifetime limit (previously 300,000)
- No change to deductible (1500-3000)
- lower co-insurance, 3% to 10% (previously 10-20%)
 
Strength
MediShield Life helped those:
- whose IP terminated by private insurance due to unpaid premium
- who rejected by private insurer due to pre-existing
- who have IP that have exclusion imposed by their private insurers
- who are above 75 year old, this is the last entry age for all the private insurers
- who wish to cover for life under Medishield

Weakness of MediShield
- No change to Deductible (1500 - 3000)
- There is still Co-insurance
- Upper limit is not as charge
- Though weakness has be reduced, but not fully eliminated
- Premium raised to proide better coverage
- meant for subsidized hospital B2 and C ward only (medishield life is irrelevant for those who wish to stay in public hospital A1 ward, B1 ward and private hospital). This group of people still need to take Integrated plan offered by private insurers.


MediShield or MediShield life is embedded into the Private plan
Medishield life + private plan = ISP
Premium CPF + Premium Private insurer = ISP Premium
 
MediShiel life premium is higher at early age even though the coverage is lower, that means premium for ISP will go up. The idea is for those who are aged and retired to pay a lower premium as compared to the current premium, the older you are, the higher the premium.

To help the public to mentally adjust to higher premium for MediShield LIfe, Government prepared to provide Subsidy for 1st 4 years, after that, you will be left on your own.
 
The basic concept of insurance. 
- Pooling of funds, the larger the pool, more efficient
- The healthy paying for the sick
- underwriting is to prevent anti-selection, potential loss for the pool

For those who buy into IP provided by private insurers, there are actually 2 shield plans
- Mandatory Medishield Life
- Private Integrated Shield Plan
- One premium payment, but one portion goes to CPF board that pays for the MediShield Life and the other portion goes to private insurers for the extra coverage
 
Those already on Integrated plan, do they still need to buy mandatory medishield life?
No need. MediShield life has automatically been embedded into the IP.
 
One can only use his medishield to pay for one shield plan, when a insured change plan the new one will automatically push out the old one. 
 
Can one take up medishield life later when he in under integrated plan now?
Could be due to outstanding premium that he lost his integrated plan
 
Now that the medishield life is mandatory, will there be duplication if one already have an existing integrated shield plan with private insurer that he will not one to give up?
 
Since it is mandatory, does that means no one have the choice to opt out? What if someone refuse to pay premium? Will he be fine or criminalized? 
 
Medishield is recapturing the market, thank to Medishield life
 
What if premium remain unpaid, would the policy be terminated and not re-activated within 2 months (still subject to health declaration)
 
Insured has been the subject and mercy of the private insurers for many years
Exclusion
Raising premium unilaterally (sighting inflation on medical cost)
Last entry age
Terminated when premium remain unpaid
Re-activate subject to health underwriting again

 
Regardless of private insurers or medishield life
Premium subsidy to all
- average household income should be less than $2600/mth per capita
- every one below age 80, get 4 years (transitional subsidy) regardless of income to offset premium hike
Premium subsidy to pioneer generation
- pioneer generation subsidy regardless of income
65 to 79, some form of premium subsidies regardless of income
Age 80 and above, premium for Medishield life fully subsidized by subsidies and medisave top up

 

 

 


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