Insurance

Are Integrated Shield Plans Necessary?

All about MediShield Life, Integrated Shield Plans and Riders. *Transfer-In promotion available. T&Cs apply.*

  • Phuan Wei Ning
  • |
  • Published on 14 Aug 2020

Did you know that medical inflation in Singapore far exceeds that of the Asia Pacific region?1 With Singapore experiencing a trend of rising healthcare cost, it is imperative that we are well prepared for any potential medical expenses that we may incur. In this article, we highlight the differences between MediShield Life and Integrated Shield Plans and explain how you can receive comprehensive coverage with Integrated Shield Plans.

(See "Transfer Your Shield Plan To FSMOne And Receive 1,000 Reward Points*")


What is MediShield Life?

A basic health insurance plan, MediShield Life provides coverage for all Singaporeans and Permanent Residents (PRs) regardless of age and pre-existing condition. Administered by the CPF board, MediShield Life can be fully paid for with MediSave.

While MediShield Life will not restrict your choice of ward or hospital, do note that coverage levels are pegged to Class B2 and C wards in public hospitals for MediShield Life. Should you choose to receive treatment in a private hospital or other ward classes in public hospitals, you would then have to bear the difference in cost for your treatment.

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What are Integrated Shield Plans?

Integrated Shield Plans are managed by private insurers and provides additional insurance coverage on top of what MediShield Life offers. Apart from offering coverage for Class B2 and C wards in public hospitals, Integrated Shield Plans also covers for Class A and B1 wards in public hospitals and private hospitals. There are currently 7 insurers that offer Integrated Shield Plans, namely NTUC Income, AIA, Great Eastern, Aviva, Prudential, AXA and Raffles Health Insurance. You may also choose to use your MediSave to pay for the premiums of Integrated Shield Plans, up to the additional withdrawal limits each year.

MediShield Life
Integrated Shield Plan
Integrated Shield Riders
Managed by
CPF board
Private insurers
Private insurers
Coverage for
Public hospital (B2 / C wards)
Public hospital (all wards) and Private hospital
Policy year limit
Up to $100,000
Up to $1,500,000
-
Amount payable
Deductibles, co-insurance and any expenses that exceeds coverage limits
Deductibles, 10% co-insurance and any expenses that exceeds coverage limits
Co-pay 5% of claimable amount or up to $3,000 (conditions may differ between insurers)

Do note that both MediShield Life and Integrated Shield Plans are subjected to deductibles and co-insurance. To receive additional coverage for your medical bills, you may wish to purchase Integrated Shield Riders to cover the amount payable for deductibles and co-insurance. This provides comprehensive coverage by ensuring that the majority of your hospital bills will be covered by your insurer.

From April 2019, new Integrated Shield Riders will be required to have a co-pay component. This co-payment will be of at least 5 per cent of the claimable amount or up to $3,000 per policy year. The conditions for co-payment may differ between insurers.

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Is an Integrated Shield Plan suitable for me?

#1 Less out of pocket expenses required

While new riders will require co-payment, an Integrated Shield Plans and rider can still provide up to 95 per cent coverage for your medical bills. This will help to lower the payable amount required and provides reassurance knowing that you would not have to bear the hefty cost of your medical treatments.

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#2 Higher annual coverage limits

As the intention of MediShield Life is to provide basic health insurance, there is a coverage limit of up to $100,000 per year. You would then have to bear the cost of any excess should your medical bills exceed this annual limit.

However, Integrated Shield Plans offer the option for a higher annual limit of up to $1,500,000. With Integrated Shield Plans, you would also be able to obtain a Letter of Guarantee from your insurer when you are hospitalised. This will waive hospital cash deposits and thus reduces your upfront payment required.

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#3 Comprehensive coverage

One other difference between MediShield Life and Integrated Shield Plan is the pre and post hospitalisation treatment expenses. While MediShield Life covers for inpatient and selected outpatient treatments, there is no coverage for pre and post hospitalisation treatment expenses.

MediShield Life
Integrated Shield Plan
Pre and post hospitalisation treatment coverage limits
-
As charged*, up to a specified number of days.
Emergency overseas treatment
-
Covered*

*Coverage conditions and limits may differ between insurers and their respective plans.

Integrated Shield Plans on the other hand will cover the treatment expenses for pre and post hospitalisation for up to a specified number of days. Take for example a ligament tear that requires surgery and hospitalisation. With an Integrated Shield Plan, you would be able to claim for post-hospitalisation expenses such as follow up treatment or physiotherapy after your surgery. However with only MediShield Life, you would not be covered for your pre and post treatment expenses.

Additionally, Integrated Shield Plans will also cover for any emergency overseas treatment that you may require whereas MediShield Life does not have such coverage.


Promotion: From now till 31 October, receive 1,000 Reward Points* when you transfer your shield plan into FSMOne. *Terms and Conditions apply. Click here to find out more.



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Information accurate as of 14 August 2020.


Available Products on FSMOne Insurance

Term Life, Whole Life, Critical Illness, Annuity, Health, Endowment, General Insurance (Personal and Commercial)


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1Source: https://www.willistowerswatson.com/en-SG/News/2019/11/global-health-care-benefit-cost-increases-will-vary-widely-in-2020-says-wtw

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