You will be able to explain what basic national hospital cover does and what an Integrated Shield Plan adds.
Ask a few colleagues what hospital cover they have and you will hear a mix of answers. "The company covers it." "I have the government one." "My mum bought me something when I was in uni." "I have a shield plan, I think, with a rider?" Few people can say which ward their cover is designed for, or how the premium is paid.
That is worth fixing, because a hospital bill is one of the most likely large costs you will face. This lesson explains the two layers of hospital cover most Singapore residents can have, and the decisions that sit on top of them.
MediShield Life is the basic health insurance plan for Singapore citizens and permanent residents, run by the CPF Board under rules set by the Ministry of Health. You are covered automatically. It covers you for life, and it covers conditions you already had before it started.
It is sized for bills in subsidised wards at public hospitals, the B2 and C classes, and for some expensive outpatient treatments such as dialysis and some cancer treatment. Its job is the large bills. You pay a deductible each year before the plan starts to pay, and then a share of the bill above that, called co-insurance. Each benefit also has a claim limit.
The deductible, co-insurance share and claim limits are set by the Ministry of Health and revised from time to time, so check the current figures on moh.gov.sg. The point to take away is that for a bill in a subsidised ward, MediShield Life together with MediSave covers most of what is left after government subsidy. If you choose a private hospital or a higher ward class, it pays as though you were in a subsidised ward, and the gap falls to you.
An Integrated Shield Plan is a private insurer's plan built on top of MediShield Life. It has two parts: the MediShield Life part, and an additional private insurance part that pays more.
The extra part is designed around a ward class. Some plans are designed for B1 wards in public hospitals, some for A class wards, and some for private hospitals. A plan for a higher ward class covers more of a bill in that setting and costs more.
When people say "a shield plan", this is usually what they mean. You can only hold one Integrated Shield Plan at a time. And unlike MediShield Life, the private part may exclude conditions you already have when you apply, which is one reason people consider hospital cover early in life, while they are still healthy.
Employer group hospital cover is separate again. It is useful while you hold the job, but it usually ends when you leave, which is why lesson 4.4 asks you to flag it.
Premiums for MediShield Life can be paid entirely from MediSave.
For an Integrated Shield Plan, the MediShield Life part can be paid from MediSave, and so can part of the private insurance part, up to a yearly limit that depends on your age. Anything above that limit is paid in cash. The current limits are on cpf.gov.sg.
This matters for planning. A plan whose premium sits within the MediSave limit costs you no cash today, though it does reduce the MediSave you will have later for other healthcare costs. A plan above the limit is a cash bill every year, and premiums for every plan tend to rise as you get older.
A rider is an add-on to an Integrated Shield Plan that reduces what you pay yourself, by covering part of the deductible and co-insurance. Without one, you pay those amounts on each claim. With one, you pay less on each claim and more in premiums every year.
Rider premiums cannot be paid from MediSave, so every dollar of them comes out of your bank account. Treat the rider as a separate decision from the plan. The question is whether you would rather pay a known cash premium every year, rising with age, or keep the money and pay the deductible and co-insurance yourself if you are admitted. Your emergency fund from module 3 is part of the answer. If it can comfortably absorb those amounts, you may need the rider less. Rules on what riders can cover have changed before, so check the current position on moh.gov.sg.
Most people can work out their hospital cover in ten minutes. Log in to the CPF website with Singpass to see your MediShield Life cover and any Integrated Shield Plan premiums deducted from MediSave. Your insurer's app or policy documents show the plan's ward class and any rider. Your HR portal or employee handbook shows the group cover.
To compare plans in general, compareFIRST, run by the Life Insurance Association and MoneySense, lets you see Integrated Shield Plans side by side. This course does not tell you which one to choose. Insurance Decoded covers the choice in detail.
Before you look anything up, have a guess at which ward class your cover is designed for. Then check it, and see how close you were.
Check your hospital cover and write down which plan you have, which ward class it is designed for and how the premium is paid.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).