Medishield Life Review 2020: Medishield Life to Be Enhanced but Premiums May Rise by Up to 35%
When it comes to health insurance, we’re pretty lucky as Singaporeans.
Because even if we don’t know anything about it and didn’t buy any of our own.
We’re all covered by MediShield Life.
A basic health insurance plan that protects all Singapore Residents against large hospital bills for life.
Regardless of age or health condition!
Recently, the MediShield Life Council announced that MediShield Life is undergoing a review to enhance its benefits.
But at the same time, premiums might increase.
Wondering how this affects you?
Let’s find out!
TL;DR: What to Expect From the MediShield Life 2020 Review
As part of MediShield Life Review 2020, a number of enhancements have been proposed to ensure that a greater proportion of subsidised medical bills are covered.
If you’re interested, you can read the Public Consultation Paper for the MediShield Life 2020 Review.
And give your opinion via the public consultation that is opened till 20 October 2020 (6pm).
Alternatively, here’s a summary of what the MediShield Life Council is proposing:
Changes to Claim Limits
At a glance, here are the proposed changes to various claim limits:
Recommended Changes to MediSave Life Claim Limits
|Daily Ward & Treatment Charges|
|Normal Ward||$700 per day||$800 per day
(add claim limit of $200 per day for first 2 days)
|ICU Ward||$1,200 per day||$2,200 per day
(add claim limit of $200 per day for first 2 days)
|Psychiatric||$100 per day|
(up to 35 days per policy year)
|$160 per day
(up to 60 days per policy year)
|Stereotactic Radiosurgery||$4,800 per treatment course||$10,000 per treatment course|
|Rehabilitative Care||$350 per day||$350 per day|
|Sub-acute Care||$430 per day|
|Kidney Dialysis||$1,000 per month||$1,100 per month|
|Immunosuppressants for Organ Transplant||$200 per month||$550 per month|
|Radiotherapy for Cancer|
|$140 per treatment||$300 per treatment|
|Hemi-Body Radiotherapy||$900 per treatment|
|Maximum Claim Limits|
|Claim Limit per Policy Year||$100,000||$150,000|
Higher Claim Limits for Daily Ward and Treatment Charges for First 2 Days of Acute Hospital Stay
The current claim limit for daily ward and treatment charges are $700 per day.
And $1,200 for an Intensive Care Unit (ICU) ward.
The Council would like for both limits to be increased.
At the same time, the Council also recognises that higher charges tend to be incurred during the first 2 days of hospital stay — due to medical tests and diagnostics.
The introduction of higher claim limits for the first 2 days will help better cover short stays.
Introduce Treatment-Specific Claim Limits for Community Hospital Care & Outpatient Radiotherapy
The current claim limit is $350 per day for both rehabilitative and sub-acute care in community hospitals.
However, sub-acute care is costlier as it involves the treatment of complicated medical conditions.
The proposed introduction of treatment-specific claim limits will help patients to enjoy similar levels of coverage under MediShield Life.
And improve coverage of costlier type of outpatient radiotherapy treatments.
Increase in Annual Claim Limit from $100,000 to $150,000
This would better protect Singaporeans from exceptionally large bills.
Due to long or multiple hospitalisations throughout the year.
Changes to Deductibles
Lower Deductible for Day Surgeries for Older Patients
The deductible for day surgery patients above 80 years old can be lowered from $3,000 to $2,000.
This is in line with the deductible for inpatient stays in C-class wards.
Doing so gives patients the choice to choose either a day surgery or an inpatient stay — since both are subjected to the same deductible.
Lower Pro-Ration Factor for Private Hospitals
Even if you seek treatment at a private hospital, you can still make claims through MediShield Life.
As MediShield Life payouts are usually pegged to subsidised public hospitals bills.
Private hospital stays are pro-rated by 35% to make them more comparable to a subsidised public hospital bill, before the MediShield Life payout is calculated.
For example, if you currently have a $10,000 private hospital bill.
It will be pro-rated to $3,500.
FYI: without pro-ration, MediShield Life will pay out more for private hospital bills as they’re usually higher than a subsidised public hospital bill
The Council recognises that the pro-ration is insufficient to bring private hospital bills down to subsidised public hospital bill levels.
And as such, it recommends for the pro-ration factor to be reduced to 25% instead.
So that same $10,000 private hospital bill, will now be pro-rated to $2,500 instead.
Removal of Standard Exclusions
Treatments Arising from Attempted Suicide, Intentional Self-Injury, Drug Addiction, and Alcoholism
Currently, there are standard exclusions for treatments due to:
- attempted suicide
- intentional self-injury
- drug and alcohol abuse
The Council recognises that these types of treatments can help support individuals to recover or overcome their addictions.
And it proposes the removal such standard exclusions.
Changes to Premiums
With all of these proposed benefit enhancements.
As well as the need to keep up with evolving medical practices and healthcare cost inflation.
It’s a given that premiums will increase in order to keep MediShield Life sustainable.
|Age at Next Birthday||Current Premiums|
|1 - 20||$130||$145||11.5%|
|21 - 30||$195||$250||28.2%|
|31 - 40||$310||$390||25.8%|
|41 - 50||$435||$525||20.7%|
|51 - 60||$630||$800||27.0%|
|61 - 65||$755||$1,020||35.1%|
|66 - 70||$815||$1,100||35.0%|
|71 - 73||$885||$1,195||35.0%|
|74 - 75||$975||$1,320||35.4%|
|76 - 78||$1,130||$1,530||35.4%|
|79 - 80||$1,175||$1,590||35.3%|
|81 - 83||$1,250||$1,675||34.0%|
|84 - 85||$1,430||$1,935||35.3%|
|86 - 90||$1,500||$2,025||35.0%|
|More than 90||$1,530||$2,055||34.3%|
However, the Government has committed about $2.2 billion for premium subsidies and support over the next 3 years to help Singapore Residents cope with the increase in premiums.
The Council has also taken into account that the total household premiums (because some are using their own MediSave to pay for their dependants) after subsidies are within MediSave contributions and inflows for most households.
So overall, no one will lose their MediShield Life coverage after this review.
What Is MediShield Life?
MediShield Life is a basic health insurance plan, which all Singaporeans and Singaporean PRs are automatically enrolled in.
It was an initiative launched in November 2015 to replace MediShield.
Which helps you to pay for large medical bills and even certain types of outpatient treatment like dialysis or chemotherapy.
At a glance, MediShield Life offers:
- Better protection and higher payouts so you pass less MediSave or cash
- Lifetime protection including pre-existing conditions
What Are the Benefits of MediShield Life?
While coverage is not as extensive as other health insurance schemes, here is what is covered under MediShield Life:
|Inpatient / Day Surgery|
|Daily Ward and Treatment Charges: Normal Ward||$700/day|
|Intensive Care Unit Ward||$1200/day|
|Surgical Procedures: |
Less Complex to More Complex Procedures
|Implants||$7,000 per treatment|
|Radiosurgery||$4,800 per procedure|
|Continuation of Bone Marrow Transplant Treatment For Multiple Myeloma||$6,000 per treatment|
|Chemotherapy For Cancer||$3,000 per month|
|Radiotherapy For Cancer||$140-$1,800 per treatment|
|Kidney Dialysis||$1,000 per month|
|Immunosuppressants for Organ Transplant||$200 per month|
|Erythropoietin for Chronic Kidney Failure||$200 per month|
|Long Term Parenteral Nutrition||$200/month
|Maximum Claim Limits|
|Per Policy Year||$100,000|
Source: Ministry Of Health Singapore
How Much Can I Claim Under MediShield Life?
There are 3 ways you can claim your hospital bill under MediShield Life:
|MediShield Life Claim Limit||Deductibles||Insurance Co-payment|
|There is an annual claim limit of $100,000 per year.||Depending on your age, there is a deductible amount you have to pay each year before you can activate MediShield Life. |
For those below the age of 80, you have to pay ~ $1,500 - $2,000. Those age 81 and above will have to pay $2,000 - $3,000.
If you were hospitalised once and paid the full deductible, you don't have to pay it again if you are hospitalised again in the same year.
|This is the percentage of the claimable amount that you have to pay.
After paying your deductible, you will have to pay your co-payment as well!
Co-Insurance Claims and Payments
|Claimable Amount For Inpatient And Day Surgery||Co-Insurance (% if Claimable Amount)|
|Co-Insurance For All Outpatient Treatments||10%|
How Much Do I Have To Pay For MediShield Life?
To minimise cash payment, you may use your MediSave to pay for your MediShield Life premiums in full.
If you’d like to, you can also use your MediSave to help pay the MediShield Life premiums of your immediate family members.
For lower- to middle- income families who have difficulties paying the premiums, there are many government subsidies and MediSave top-ups to help ensure that you are adequately covered.
For those who are needy and are unable to pay their share of premiums even after subsidies.
The Government offers Additional Premium Support to help you with the premium payments.
if you’d like to find out more about your premiums payable as well as the types of subsidies which you might be eligible for.
You can use the MediShield Life premium calculator to find out.
Is Having MediShield Life Enough?
MediShield Life is a really basic health insurance that is meant to help most Singapore Residents to defray their medical costs.
Whether the coverage is sufficient…
That’s highly dependent on your needs.
For example, if you were hospitalised, MediShield Life will give you enough payouts to cover the cost of Class C or B2 wards at public hospitals.
But if you’d like to enjoy greater flexibility with regard to:
- the types of wards you can stay in
- the types of treatments you want
then you might want to opt for an Integrated Shield Plan (IP) to enhance your MediShield Life coverage so you can have more options!