Press Releases
Launch of Standard Integrated Shield Plan on 1 May
15 March 2016
This article has been migrated from an earlier version of the site and may display formatting inconsistencies.
1. A new Standard Integrated Shield Plan (IP) targeted at Class B1-level coverage will be available from all IP insurers from 1 May 2016. The Ministry of Health (MOH) has worked with the insurance industry to develop key features of the Standard IP, as recommended by the MediShield Life Review Committee in June 2014.
2. The Standard IP is a private insurance product which gives Singaporeans the option of additional coverage beyond MediShield Life, targeted at Class B11. It will also be a viable option for those who want to switch from Class A and Private Hospital IPs to a more affordable plan.
Standard IP Benefits Regulated by MOH
3. The benefits of the Standard IP are identical across all IP insurers (see Annex A for a detailed list of benefits). This enables Singaporeans to compare premiums across insurers easily and make an informed decision as to which plan suits their needs.
4. Its key design features are as follows:
a. Claim limits sized to fully cover 9 out of 10 Public Hospital Class B1 bills.
b. Coverage for hospital stays and selected outpatient treatments, such as chemotherapy and kidney dialysis, similar to MediShield Life.
c. Co-payment features of claim limits, deductible and co-insurance, in line with ongoing efforts to manage healthcare costs.
5. MOH will review the Standard IP from time to time to ensure that the benefits remain relevant to policyholders.
Insurers Responsible for Setting of Premiums and Underwriting
6. Similar to all other IPs (see Diagram 1 below for an illustration of what an IP is), premiums and underwriting for the additional private insurance component of the Standard IP are determined by insurers based on their own commercial considerations and risk assessment frameworks. The five IP insurers’ Standard IP premiums are in Annex B. All insurers have committed to keeping the additional private insurance component of the Standard IP premium fixed for the first two years from launch. MediShield Life premiums will remain unchanged for five years from launch of MediShield Life. As such, premiums for the Standard IP will remain unchanged for the first two years.
Diagram 1: What is an IP?
7. Singaporeans with Class A or Private Hospital IPs can switch to the Standard IP with their current insurer without additional underwriting2. However, policyholders who switch to another insurer will need to undergo underwriting. Insurers are allowed to assess, approve with or without exclusions, or reject applications based on their own risk assessment frameworks. Regardless of the underwriting outcome, all Singaporeans are covered for all pre-existing conditions under MediShield Life.
Purchase of IPs Should Be Carefully Considered
8. In deciding whether to purchase or switch to/ from an IP, Singaporeans should consider their preferences and affordability of premiums over the longer-term.
a. Preferences: All Singaporeans are covered by MediShield Life, which provides adequate coverage for hospitalisations in Class B2/C wards in public hospitals. IPs provide enhanced benefits in Class B1/A/private hospitals, including a choice of doctors and additional material comforts, like air-conditioned wards.
b. Affordability of premiums: As IPs provide higher coverage than MediShield Life, all IP premiums are higher than MediShield Life premiums. In addition, IP premiums may increase significantly with age, especially after retirement.
9. Standard IP premiums are more affordable than Class A and Private Hospital IP premiums. Based on current Standard IP premiums and Additional Withdrawal Limits, Medisave can be used to fully pay for all insurers’ Standard IP premiums up to age next birthday (ANB) 75. Policyholders above ANB 75 may face some cash outlay for Standard IP premiums.
10. Singaporeans considering getting the Standard IP should seek additional information and advice from a financial advisor on their specific situations, before making a decision.
MINISTRY OF HEALTH
15 MARCH 2016
[1] Patients hospitalised in Class B1 wards have a choice of doctor, and Class B1 wards have 4 beds, TV, and are air-conditioned. The Government provides subsidies of 20% for Public Hospital Class B1 wards for Singapore Citizens.
However, policyholders on Class A or Private Hospital IPs who had gone through moratorium underwriting will need to go through medical underwriting for the Standard IP.