Insure against health costs

Lee Hui Chieh, Wed, Aug 08, 2007 The Straits Times

Everyone knows a horror story. A simple procedure turns into a nightmare of complications, inflating a hospital stay from days to months, and the cost in the process.

That was what happened to a Myanmar patient, Madam Daw Tin Nyunt, whose two-day stay in a private hospital stretched to 344 after a failed heart stent implant.

Her hospital bill also ballooned to $560,000, from the initial $15,227 estimate given by the hospital.

It won't happen to you?

Not if you make sure you are adequately covered, say financial advisers.

They say there are three kinds of insurance plans one should have to make sure that you won't be knocked for a loop by health-care costs: MediShield or enhanced Shield plans (to take care of hospitalisation costs), disability insurance and critical illness plans (to ensure you have an income if you can no longer work for a prolonged period).

MediShield and Shield plans

If you have nothing else, have at least a plan which will take care of hospitalisation costs.

The top must-have is MediShield or - its enhanced versions - the Shield plans, said Mr Eddy Cheong, 37, who heads independent financial advisory firm Providend's family office services.

MediShield is a basic hospitalisation and surgical plan that all Central Provident Fund (CPF) account holders have, unless they have opted out, or upgraded to a Shield plan.

After a revamp in 2005, MediShield now pays for 60 per cent of hospital bills, on average.

Shield plans, which are offered by private insurers and approved by CPF, have also improved. Some 'as charged' plans no longer place limits on the amount that can be claimed each day for hospital stay and procedures.

You can even buy a rider to pay for the portions of the bill that the policy doesn't cover, such as the deductible. So a carefully chosen 'as charged' plan could reimburse as much as the entire bill.

Policies are usually pegged to hospital ward classes. Choose a plan based on the type of services you expect, and what you can afford.

Mr Cheong's advice for buying MediShield or Shield plans: Go for the best you can afford.

He said: 'It's a question of insurability. If you go for something more high-level, you can downgrade any time you want.

'But if you start low, and want to upgrade later, there will be medical underwriting.'

Underwriting assesses whether a person is healthy enough to qualify for coverage.

Since you are more likely to develop medical conditions later in life that insurers would shy away from covering, such as high blood pressure and high cholesterol, you may not be able to upgrade to a better plan then. So, buy the best one you can afford while you are young and healthy.

There is another reason you should consider a better plan.

If the Government should introduce means testing in future - meaning giving subsidies based on actual income rather than on your choice of ward class - you could end up having to stay in a more costly ward than you wanted. A policy which is pegged to a lower class will not give you enough coverage.

Critical illness plans and disability insurance

Once you have your hospitalisation cover, think about that other big headache people face after becoming seriously sick - loss of income during the period of illness and recovery.

This is where disability insurance and critical illness plans come in.

While not as essential as Medishield or Shield plans, both should be taken up, Mr Cheong said.

They will pay out a sum of money to compensate for income loss, or to pay for nursing services, medical equipment and supplies and even tonics and alternative treatment such as traditional Chinese medicine.

Most insurance companies carry critical illness plans which cover a range of conditions. You should compare different plans from different companies to see which best suits your wallet.

Mr Cheong recommends insuring yourself for a payout of two to five years' annual income if you become critically ill.

The other should-have is disability insurance, which spans your working years. This will pay a monthly allowance if you become disabled and cannot work for a prolonged period.

This is different from total and permanent disability - much rarer and more serious - which is usually covered as part of a life insurance policy.

He advises insuring for a payout of 50 to 75 per cent of your current monthly salary.

Take note of the fine print though. Such plans lapse once you are out of work or out of the country for a certain period of time.

As you are nearing retirement age, you can then take up insurance for long-term care or disability, such as ElderShield.

Like taking the correct medication for a disease, buying the right insurance at the right time will cure your wallet's woes.

Which is the best Medishield or Shield plans should you choose? Drop us a line and get a free financial health check.

MediShield to automatically cover all newborns, children

March 6, 2007, 4.30 pm (Singapore time)

MediShield to automatically cover all newborns, children

By Ng Kai Ling, ST Interactive Reporter

NEWBORNS and children will be automatically covered under MediShield later this year unless their parents opt not to, under the Government's 'auto-cover' where an annual premium of $30 will be deducted from the Medisave account of either the father or the mother.

The move is expected to affect some 390,000 young Singaporeans below the age of 20.

Children entering Primary One will also come under this opt-out scheme starting next year. Their annual premiums will also be deducted from their parents' Medisave accounts.

For older children still in school, there will be a one-off exercise to get them under the scheme.

This was announced on Wednesday by Health Minister Khaw Boon Wan, who expressed concern that young Singaporeans below 20 years of age are not insured.

'The premium at their age is inexpensive, only $30 per year. And young parents can use their Baby Bonus to pay for the premium so cost is not an issue,' Mr Khaw said during the Budget debate for his ministry estimates and programmes.

'MediShield coverage from young will give parents the peace of mind that, should their children develop any illnesses as they grow up, they will have insurance coverage for such illnesses and the subsequent treatment,' he added.

Mr Khaw said that once the majority of children here are covered, he will turn his attention to the 100,000 or so housewives who are uninsured.

Finally protection for the newborn! There are so many stories where newborns with birth defects are uninsurable! These parents having a tough time paying for the hefty medical bills, which range from thousands to hundreds of thousands of dollars.

The issue now is what about those newborns which have birth defects? Can they be insured under MediShield with their pre-existing conditions? Check the fine print! But at least it spells hope for those newborns fighting to live, and parents fighting to pay for medical treatment.

Full paying patients but given slow and poor service

Feb 23, 2007
FRIDAY MATTERS
When private patients' patience can wear thin
By Chua Mui Hoong, DEPUTY POLITICAL EDITOR

It led me to wonder: Why would Singaporeans persist in paying private rates in a public hospital, if they have to put up with much longer waiting times, which increase anxiety, waste time sitting in a hospital waiting room when they could be resting at home if ill, or working if well, and generally endure a poorer quality of customer service?

It isn't as though rates for private patients in public hospitals are that much lower than rates in the private sector. (Data on the Ministry of Health website comparing rates for some procedures suggests that cost can be 20 to 30per cent less in public hospitals for Class A patients than at private hospitals.)

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A simple explanation may be that the Singapore health care system is overloaded and overworked? Or can it be that Singaporeans are working themselves to such an unhealthy state?

Why has the health care system in Singapore has such long waiting times?
Why are the public hospitals inefficient compared to the private ones?

Why not have an insurance policy that pays for private hospitalisation?
Why not choose faster and better health care?

If you are unsure what kind of medical insurance coverage you need, check with your friendly needs based advisor www.abundance2insure.com

How to get a $1 million dollar medical insurance policy using no Cash!

How to get a $1 million dollar medical insurance policy using no Cash!

By Kelvin Tan

You must be telling yourself this must be another Internet scam. Well this time you are wrong! If you are a Singaporean with CPF savings and Medisave you can qualify for this medical plan.

Medical plans in Singapore have fairly stringent health underwriting. In order to qualify for this medical plan you need to be close to perfect health before the insurance company will insure you. That being the case, you should select a good insurer and stick with them, before your health deteriorates through the years.

The current basic CPF Medishield plan which covers majority of Singaporeans provides only partial coverage and the patient is left with a hefty bill to pay. Majority of Singaporeans are still in the dark about MediSave or MediShield and assume that the standard plans will protect them from these huge bills.

This may be a shock but until recently, Medishield was catered to handle catastrophic illness only, and even then the majority of the bill is still left to the patient to pay which can amount up to more than 60% of the entire bill.

In the recent forum page, a lady wrote in to complaint why CPF only paid 3% of the $50,000 hospital bill for her mother’s hospitalization.

Nov 28, 2006 Straits Times Interactive Forum

MediShield paid $1,438 of $50,000 hospital bill

This came as a rude shock to her! CPF payout was calculated based on subsidized hospitalization. As a result she could not claim the full sum of $50,000 even though there may be more than $50,000 in her account.

MediSave should be used to buy hospital & surgical insurance policies and not to pay hospital bills! For the simple fact that Medisave yearly withdrawal limits are too low to pay for any hospital bills, furthermore this monies are supposed to last the person’s entire life. If you are struck with a catastrophic illness this would have wiped out your Medisave account with one go! Therefore these limits were imposed to reduce the amount MediSave could be used a year.

That is why it makes sense to actually invest in a good hospital and surgical insurance plan that will provide cover for you, for as much as possible and low premiums that only cost a few hundred dollars a year, compared to the thousands or hundreds of thousands it may cost you when you are hospitalized.

Recent years have seen the emergence of many improved medical shield plans, with “as charge” coverage. This will cover to about roughly 80% of medical health costs when warded in government restructured hospitals. Depending on the kind of wards you prefer. The premiums can be paid using the MediSave account, thus no cash is needed!

Example

For a male, aged 43 premiums are at SGD $221 with a yearly limit of $150,000 (B Plus plan, for Class B Wards and below). Just imagine if you were struck with a hospital bill of $10,000. CPF may only reimburse up to $3,000 per year (simplified for illustration purpose only). The other $7,000 will have to be paid by you. If you were to have a medical policy, this is how it works the MediShield insurance cost $221 / year will cover up to 80% of the bill or $8000. You have to pay the co-insurance and deductible (estimated) $2000 from your own pocket. You can cover this co-insurance and deductible with another cash medical plan.

Get protected now before it’s too late!

For more details on how to get your $1 million dollar medical Insurance policy using no cash contact us at www.Abundance2Insure.com

Rule change sees Medisave claims jump

Jan 28, 2007

TOP OF THE NEWS

Rule change sees Medisave claims jump

By Melissa Sim

THE use of Medisave to pay for outpatient treatment of chronic diseases is catching on, with $3.1 million worth of claims made since the rules were changed in October last year.

The number of claims has been climbing ever since the Government changed tack and decided to allow the use of Medisave for certain outpatient treatments.

About 11,500 claims were made this month, amounting to about $1.2 million, up from 7,000 claims the month before.

The jump is attributed to the fact that the list of chronic conditions was expanded at the beginning of this month to include high blood pressure, high cholesterol and stroke.

When the rules were first changed, only diabetes patients were eligible to use Medisave.

The Government's rationale is that medical costs will be held down in the long term if patients managed their chronic conditions properly with the guidance of their family doctor.

People suffering from these conditions, they believe, will be more willing to make the frequent trips to the doctor if some of the payment came from their Medisave rather than entirely out of their own pockets.

Diabetes treatment accounted for 75 per cent of the claims this month, followed by 20 per cent for high blood pressure.

Health Minister Khaw Boon Wan thinks the number will rise as people start getting used to how the scheme works.

'I think our estimate is that we have about a million people with one of the four conditions. Now we are seeing about 12,000 a month, but I'm sure there are many more such cases.'

A patient can use up to 10 Medisave accounts belonging to him and his immediate family to pay for treatment, up to a limit of $300 a month.

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If you do not have a good medical plan, your MediSave will be wiped out over time due to claims. You should be using MediSave to buy insurance to pay for your hospitalization bills and not using MediSave to pay for medical bills! Get a medical insurance policy before your health turns and you are uninsurable. Get a medical policy for you and your family now! Click here for contact details.

MediShield affordable even with fee hike

Jan 23, 2007

MediShield affordable even with fee hike

Health Minister addresses concerns over health-care schemes and costs

By Salma Khalik, Health Correspondent

MEDISHIELD will remain affordable even with the proposed premium hikes, promised Health Minister Khaw Boon Wan.

This national insurance scheme, which covers 77 per cent of the population, is due for some changes in the next few months. The purpose: to increase coverage from the current 60 per cent of big bills to 80 per cent.

The increase in premiums will not exceed $10 a month.

Mr Khaw assured Madam Halimah Yacob (Jurong GRC): 'If it's not affordable, what's the point? It may be a good plan on paper, but if most people are excluded, then it doesn't serve its main purpose.'

He told Parliament yesterday that he was more concerned about people having too little Medisave for their old age needs.

Singaporeans have an average of about $12,000 in their Medisave accounts by the time they retire. This should be enough to cover 10 'normal' hospitalisations at the subsidised B2 class ward.

With the higher withdrawal limits of $400 a day allowed from April last year, patients in the subsidised wards can use Medisave to pay almost their entire hospital bill.

The higher limit has not caused a shift of patients to more expensive ward classes, he said.

But $12,000 is not a big sum, especially with people living longer, Mr Khaw said.

This is why he has to act as the 'unpopular gatekeeper' and turn down requests from members to use Medisave to pay for a host of treatments.

Dr Lim Wee Kiak (Sembawang GRC) asked if allowing the use of Medisave for chronic illnesses would deplete people's savings.

Since late last year, up to $300 may be withdrawn from Medisave each year for outpatient treatment of diabetes, high blood pressure, high cholesterol levels and stroke.

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MediShield paid $1,438 of $50,000 hospital bill

STI Home > ST Forum > Story

Nov 28, 2006

MediShield paid $1,438 of $50,000 hospital bill

ALL citizens who have contributed to Medisave qualify for health insurance, in the form of MediShield.

This is so that, with rising health-care costs, ......................

However, what happened to my mother-in-law recently proved unsettling.

My mother-in-law was admitted to Gleneagles Hospital following a heart attack and the specialist there recommended that she undergo a bypass immediately. Unfortunately, she died without regaining consciousness.

Now we are laden with medical bills of more than $50,000.

As my mother-in-law was covered under MediShield, we expected at least a small portion of the bills to be taken care of by the insurance.

However, after a long wait, the Central Provident Fund Board has granted us a payout of only $1,438, less than 3 per cent of the total bill. How is the payout determined?

By subscribing to MediShield, we expect that it would help us to cover some of our medical costs but it is not of much help when the payout is so little.

I hope the authorities will look into this issue.

We are not asking for welfare - just a reasonable payout from MediShield.

Chew Kai Hwa (Ms)

Dec 2, 2006

Why MediShield paid only $1,438 of huge bill

IN 'MEDISHIELD paid $1,438 of $50,000 hospital bill' (ST, Nov 28), Ms Chew Kai Hwa asked why MediShield could not pay a larger portion of her mother-in-law's hospital bill at Gleneagles Hospital.

MediShield Basic is meant to help members pay for hospital bills incurred in subsidised Class B2/C wards. As Ms Chew's mother-in-law was covered under the MediShield Basic plan, it would not fully cover the bill for her stay at a private hospital.

For those who want additional protection to cover stays in private wards or hospitals, there are rider products that can be purchased to complement the MediShield Basic plan. These enhanced Medisave-approved insurance plans are offered by five private insurers and a listing of such plans is available on the Ministry of Health website at www.moh.gov.sg.

As there are many ..........., the type of coverage desired and the affordability of premiums.

Karen Tan (Ms)
Director
Corporate Communications
Ministry of Health

Don't be caught off-guard, learn how to maximize your MediSave or MediShield for better protection! Click here for contact details.