EMPOWERING SINGAPOREANS TO MAKE INFORMED HEALTH INSURANCE DECISIONS THROUGH THE HEALTH INSURANCE PLANNER

              The Central Provident Fund (CPF) Board and Ministry of Health (MOH) have launched the Health Insurance Planner (HIP), an interactive and personalised tool designed to empower Singaporeans to make informed decisions about their health insurance coverage.

2.               Today, there are three tiers of healthcare insurance. All Singaporeans have MediShield Life, the national basic health insurance plan that provides universal and lifelong protection against large hospitalisation bills and outpatient treatments such as cancer and dialysis. MediShield Life is sized to be sufficient for subsidised bills in public healthcare institutions, and premiums are fully payable by MediSave.

3.               Seven in ten Singaporeans also choose to purchase Integrated Shield Plans (IPs) that are offered by private insurers. IPs offer additional coverage for treatment at private hospitals or unsubsidised wards in public hospitals. Finally, some buy riders that typically reduce the co-payment for IPs. The premiums for IPs can be paid in part by MediSave, subject to annual limits. Rider premiums are fully payable in cash.

4.               Given the complexity of insurance, it can be difficult for individuals to assess and make decisions about their private health insurance coverage. The HIP provides a forward-looking, personalised, and user-friendly platform for Singaporeans to review and better understand the long-term MediSave and cash expenses necessary to support their desired health insurance coverage.

5.               The HIP is the first-of-its-kind in Singapore and aims to help individuals to:

(a)  Visualise their long-term, personalised projections of MediSave savings and health insurance premiums;

(b)  Compare key benefits, features and premiums across IPs for their preferred ward type; and

(c)   Project their long-term (up to 30 years) premiums for their selected IP and its corresponding rider.

6.               The Life Insurance Association Singapore (LIA) and the Insurance and Financial Practitioners Association of Singapore (IFPAS) will partner MOH and CPFB to coordinate efforts to raise awareness of the HIP with members of the public.

7.               The tool complements other efforts to make information on health insurance more accessible, including the comparison of IPs across all insurers on MOH’s website (go.gov.sg/moh-compare-ip). Members of the public are also advised to contact their insurers or financial advisors if they require more details and advice on their IP and rider. Together with existing avenues of information, the HIP is an additional tool to help Singaporeans to make more informed decisions about healthcare insurance.

8.               The HIP is accessible via the CPF website using Singpass (https://www.cpf.gov.sg/healthinsuranceplanner) and can be completed in four steps. To use the HIP, members will need to prepare the name of their IP and rider, as well as the number of years left to pay for their CareShield Life and ElderShield Supplements, if applicable. The HIP is part of “PLAN with CPF” (https://www.cpf.gov.sg/member/plan-with-cpf), a one-stop portal for financial planning resources.

Annex - Features of the Health Insurance Planner

The screen grabs illustrate the results of an individual who:

·       Is aged 46

·       Has a Class A IP and rider

·       Is interested in comparing other Class A IPs

(i) Long-term, personalised projections of MediSave savings and health insurance premiums

·       This projection illustrates the member’s projected cumulative MediSave savings and healthcare expenses, from the current age of 46 until age 70, taking into account the inflation rates set by the member.

·       Projected MediSave Savings (green bar) includes: (a) Current MediSave Account balance and (b) Anticipated inflows and interest earned over the projection period

·       Projected Expenses comprises two parts: (1) Projected Medisave Expenses (orange bar) which includes: (a) Average MediSave used for medical expenses annually for the member’s age group, (b) Premiums paid using MediSave for MediShield Life, IP (capped at the Additional Withdrawal Limit), CareShield Life / ElderShield, Supplements (capped at the MediSave withdrawal limit) and (c) Dependants’ premiums, if applicable; and (2) Projected Cash Expenses (shaded pink bar), which includes IP and rider premiums paid in cash

·       This projection illustrates the member’s projected annual premiums, taking into account the inflation rate set by the member. Projections are similarly up to 30 years, from the member’s current age of 46 until age 70.

(ii) Comparison of key benefits, features, and premiums across Integrated Shield Plans (IPs) for members’ preferred ward type

(iii) Long-term premium projections for their selected IP and its corresponding rider

·       This projection illustrates the member’s projected cumulative IP and rider premiums for his/her current and selected plans, from the current age of 46 until age 70. It takes into account the inflation rate set by the member.

·       This projection illustrates the member’s projected annual IP and rider premiums for his/her current and selected plans, taking into account the inflation rate set by the member. Projections are similarly up to 30 years, from the member’s current age of 46 until age 70.