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1. What is MediShield Life? How does it benefit me?
MediShield Life is a basic health insurance plan that helps to pay for large hospital bills and selected costly outpatient treatments such as dialysis and chemotherapy for cancer. It is basic because it is sized for subsidised treatment in the public hospitals.
MediShield Life will offer
· Better protection and higher payouts, so that patients pay less Medisave / cash for large bills
· Protection for all Singapore Citizens and Permanent Residents, including the very old and those who have pre-existing conditions.
· Protection for life
Government will also provide significant help to Singaporeans to keep premiums affordable:
· Premium Subsidies for the lower- to middle-income
· Pioneer Generation Subsidies for the Pioneer Generation
· Merdeka Generation Subsidies for the Merdeka Generation
· Additional Premium Support for the needy who are unable to afford their premiums after subsidies.
MediShield Life premiums will be affordable, and may be fully paid from MediSave. No Singapore Resident will drop out of MediShield Life due to the inability to pay the premiums.
For more details, please refer to medishieldlife.sg
2. What is the difference between MediShield Life and ElderShield?
Both MediShield Life and ElderShield are insurance plans, but they serve different purposes. They complement each other in providing protection against different types of healthcare expenses.
MediShield Life is a basic health insurance plan that helps to pay for large hospital bills and selected costly outpatient treatments such as dialysis and chemotherapy for cancer. It targets Class B2/C wards and subsidised treatment in the public hospitals.
ElderShield is a severe disability insurance scheme which provides basic financial protection to severely disabled elderly who need long-term care. ElderShield will pay the insured a monthly cash payout of $300 or $400 if the insured becomes severely disabled, which can help pay some of the living expenses for the care of a severely disabled person.
Besides ElderShield, the Pioneer Generation Disability Assistance Scheme (PG-DAS) provides $100 a month to help Pioneers who permanently need assistance in at least 3 activities of daily living with their care needs.
3. Is MediShield Life coverage only for those who use Class B2/C wards? What about those who wish to use Class A/B1 or private hospitals – will they get any MediShield Life benefits?
From 1 Nov 2015, MediShield Life will provide coverage for all Singapore Residents for life, regardless of which ward class they choose. MediShield Life will help all Singapore Residents with large hospitalisation expenses. The level of benefits is based on the costs in Class B2/C wards in public hospitals.
You will get the same level of benefits, whichever ward class you choose or if you stay in a private hospital. The benefits are calculated based on the costs in Class B2/C wards.
You can sign up for an Integrated Shield Plan (IP), managed by a private insurer, if you want additional coverage of bills in the Class A/B1 wards or private hospitals.
IPs comprise 2 components: (i) MediShield Life and (ii) additional private insurance coverage for the additional coverage in Class A/B1 wards in the public hospitals or private hospitals. However, premiums for IPs will be higher, so do consider your choice of ward class carefully and the premiums affordability over the lifetime, and plan your insurance coverage accordingly.
4. What are the different types of Government subsidies to help Singaporeans with their MediShield Life premiums? Who will be eligible for them?
The Government will directly help Singaporeans with their MediShield Life premiums, such as Premium Subsidies for the lower- to middle-income, Pioneer Generation subsidies for the Pioneers, Merdeka Generation subsidies for Merdeka Generation seniors and Medisave top-ups.
The different types of subsidies are:
Premium Subsidies (up to 50%) for lower- to middle-income Singapore Residents with household monthly income per person of $2,800 and below (applicable for renewals from 1 September 2019) and living in residences with an Annual Value of $21,000 and below. Individuals who own multiple properties will not be eligible. Permanent Residents (PRs) will receive half the applicable Singapore Citizens (SCs) rate.
Pioneer Generation Subsidies and Medisave top-ups for the Pioneer Generation (up to 60%) ranging from 40-60% and up to $800 a year respectively, regardless of household income and Annual Value of residences. With the Pioneer Generation Subsidies and Medisave top-ups, all Pioneers will pay lesser MediShield Life premiums than MediShield premiums today.
Merdeka Generation Subsidies for the Merdeka Generation, ranging from 5%-10%. This is on top of the existing premium subsidies that the Merdeka Generation seniors may receive. Merdeka Generation seniors will also receive annual MediSave top-ups of $200 from 2019 to 2023, which can be used to pay MediShield Life premiums.
Additional Premium Support for all needy Singaporean families on a case-by-case basis. This is to provide help for those who are unable to afford premiums even after the subsidies provided by the Government.
5. My MediShield Life premium has increased compared to last year due to a reduction in the amount of Transitional Subsidies. Why is there a reduction in Transitional Subsidies?
Transitional Subsidies are provided to all Singapore Citizens in the first 4 years of MediShield Life to ease the shift from MediShield to MediShield Life. In line with the intent, Transitional Subsidies will cover 90% of the net increase in premiums (after other subsidies) in the first year of MediShield Life, followed by 70%, 40% and 20% in the second, third and fourth year of MediShield Life respectively.
The phasing of the Transitional Subsidy rate from 90% to 70%, 40% and 20% over 4 years has been published as part of the MediShield Life publicity, such as the MediShield Life Welcome Booklet sent to all households in Aug 2015 and via the MediShield Life website.
While Transitional Subsidies will phase out after the first 4 years of MediShield Life, lower- to middle-income households will continue to receive permanent Premium Subsidies for their MediShield Life premiums. Pioneers will also continue to receive Pioneer Generation Subsidies.
Additional Premium Support will be available to help those who are needy and unable to afford their MediShield Life premiums even after Government subsidises, Medisave, and have limited family support.
No one will lose MediShield Life coverage because he/she is unable to pay for his/her premium.
6. How will those with no income (e.g. needy, not working) be able to afford the MediShield Life premiums? What if they do not have enough MediSave or do not have a MediSave account?
There will be extensive outreach to help Singaporeans with their premiums. There are significant Government subsidies in the form of MediShield Life Premium Subsidies for the lower- to middle-income, Pioneer Generation Subsidies and Merdeka Generation Subsidies. Those who are less well-off will qualify for higher Government subsidies to reduce their premium payment.
Medisave may be used to pay the full MediShield Life premiums. If an insured has insufficient MediSave or no MediSave account, family members such as parents, spouse and siblings can help to use their MediSave to pay for their premiums.
If policyholders do not have family support to help them with their MediShield Life premiums, they can tap on the Additional Premium Support.
No one will lose MediShield Life coverage because he/she is unable to pay for his/her premiums.
7. What are Medisave-approved Integrated Shield Plans and should I consider getting one?
MediShield Life payouts are pegged at the costs of Class B2/C wards. If you would like additional coverage beyond MediShield Life, you may also consider taking up an Integrated Shield Plan (IP). IPs consists of 2 components – the MediShield Life component and an additional private insurance coverage component. Those covered under IPs enjoy the combined benefits of (i) MediShield Life, run by the Central Provident Fund Board; and (ii) the additional private insurance coverage for Class A/B1 and private hospital stays, run by private insurers.
The existing IPs in the market are:
- AIA HealthShield Gold Max,
- Aviva MyShield,
- AXA Shield,
- Great Eastern SupremeHealth,
- NTUC Income IncomeShield,
- Prudential PruShield, and
- Raffles Health Insurance Raffles Shield.
As MediShield Life is a component of IP coverage, there is no duplicate coverage between MediShield Life and your IP.
Please note that as IPs are private plans with additional coverage, premiums are much higher than MediShield Life premiums. You may therefore wish to carefully consider the affordability of premiums over the longer-term.
While MediShield Life will provide coverage for any pre-existing conditions, you may be subject to additional health checks for the additional private insurance coverage component, possibly resulting in exclusions and/or risk-loading for the additional private insurance coverage component. We advise you to carefully consider and purchase insurance coverage accordingly. Please speak to your financial advisor who will be able to share more about your options and their implications.
8. I already have an Integrated Shield Plan. How is MediShield Life relevant to me?
Integrated Shield Plans (IPs) comprise 2 components – the MediShield Life component and the additional private insurance coverage. Those covered under IPs currently enjoy the combined benefits of MediShield Life, which is run by the Central Provident Fund Board, and the additional benefits of the additional private insurance coverage, which is run by private insurers.
As MediShield Life is a component of your IP coverage, you need not worry that there is duplicate coverage between MediShield Life and your IP.
As MediShield Life will cover all pre-existing conditions, all IP policyholders will also enjoy MediShield Life coverage for life, for any pre-existing conditions. This will apply even if your pre-existing condition is excluded from the additional private insurance coverage by your private insurer. You will have peace of mind that you will continue to remain covered at the basic level, even if you have exclusions on your IP cover or you have to drop your IP cover.
9. What is the Standard Integrated Shield Plan?
The Standard Integrated Shield Plan (IP) is a private insurance product targeted at covering large hospital bills and selected outpatient treatments at the Class B1 level in Singapore’s public hospitals.
It is available from all the insurers who sell IPs, from 1 May 2016.
The Standard IP will give Singapore Residents an option for additional coverage beyond basic MediShield Life in a standardised, easily understood package. It will also be a viable option for those who want to switch from their Class A and Private Hospital IPs to a more affordable plan.
The Standard IP benefits are regulated by the Government and are identical across all IP insurers.
Similar to all other IPs, premiums for the additional private insurance coverage component of the Standard IP are set by the private insurers.
10. Will I be arrested if I am unable to pay my premiums?
You will not be arrested if you are unable to pay for your MediShield Life premiums. Various forms of support are available to help with the payment of your MediShield Life premiums.
However, if an insured person is informed that he is restricted from leaving the country until his premiums are paid, but still tries to leave the country, he will be arrested.