Note on terminology: A private Integrated Shield Plan (ISP) does not = private hospital coverage.
There are ISPs for B1 and A-class Government wards. Just that the portion that “tops up” MediShield Life is with private insurers.
The recent debate in the news is about the “private private” ISPs – being able to continue with one’s chosen private specialists that fall out of an insurer’s panel. All government specialists are on the panels.
Back to the question.
YES, consider buying an ISP, even if you intend to use B2/C wards, because:
That’s why the Government announced recently that they are reviewing MediShield Life.
There is means testing to qualify to use NKF. My late father was a dialysis patient for 3.5 years. Because mum was working, he didn’t qualify. Helpfully, he had an ISP that covered a good part of the $3000/mth bill.
IMPORTANT: Even if your company provides insurance, you still need your own ISP. You may not be able to get your own ISP if you have health issues before you leave or retire from your company.
What’s the strategy for choosing an ISP?
But keep all life and health insurance to less than 15% of take-home income (MAS’ Basic Financial Planning Guide).
Insurance is one thing on which you don’t want to have a return! Once you have ANY health problems (or even put on weight), you can’t buy or upgrade anymore.
It’s not wasted: you are insuring your insurability.
Recently, there’s a new “starter” type of cheap “private private ISP” that limits claims to $20k/yr. One private surgery can easily bust this. Then you are worse off than if you just got the B-ward plan. It does its job: https://www.moneyowl.com.sg/articles/zhngyour-medishield-life-with-a-low-cost-ip/
If you are concerned about being upsold (yes, the Shield plan is a door opener for more insurance sales), do some homework yourself, and maybe buy it online.
MOH has already done a comparison: https://www.moh.gov.sg/healthcare-schemes-subsidies/medishield-life/comparison-of-integrated-shield-plans
This article was originally published on MoneyOwl's website.
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