Special Report on MediShield (ST, March 12)

12 Mar 2005, The Straits Times

Question

Special Report on MediShield (ST, March 12)

ST (12 Mar, pS1-S2, S4, S6-S10) carried an 8 page special report on MediShield, entitled MediShield Myths. It reported 3 myths of MediShield, namely: 1) MediShield will cover most of a policyholder's hospitalisation expenses; 2) The revamped MediShield will cover all bigger bills; 3) Daily room and board covers charges only. It also reported on the 10 things that people should know about MediShield and health insurance in general. These 2 articles basically explained the features of MediShield and what MediShield is yyy a catastrophic plan, used to help people with long hospital stay pay for their hospitalisation bills.

Reply

Reply from MOH 

MediShield Myths 

We thank you for the Special Report on MediShield (ST, March 12). It helps explain the complicated topic of medical insurance and illustrate how those with large bills in Class B2/C wards will benefit most from the reformed MediShield. 

2. The report rightly points out the distinction between comprehensive and catastrophic medical insurance. Comprehensive insurance has low (or even no) deductible and co-payment, but at very high premiums. For example, one comprehensive medical plan in the market charges up to $5,500 per year. This is clearly not affordable to the majority. Moreover, it tends to be abused, leading to spiralling premiums. . 

3. On the other hand, catastrophic medical insurance, like MediShield, comes with much lower premiums. This is possible because firstly it covers only large hospital bills. These are the bills that cause the greatest worry and hardship and which many may find unaffordable. In any case, with Medisave, Singaporeans would have savings to pay for the smaller hospital bills not covered by MediShield.

4. Secondly, MediShield is intended to cover expenses at Class B2/C wards. That is why those who buy MediShield thinking that it will cover stays in private or Class A/B1 wards will naturally find it insufficient. For such hospitalisation, Singaporeans would need to top up their MediShield with additional coverage, such as a private enhancement plan.

5. Ms Genevieve Cua in her article MediShield Myths' suggested that the revised MediShield daily claim limit of $250 for room and board charges would be insufficient as patients would need to pay for other treatment charges. She is mistaken. As MediShield is meant for Class B2/C hospitalisation, the $250 claim limit is more than sufficient to cover the room charges as well as any related charges for prescriptions, consultations and tests. This is because in Class B2/C, the daily room charges are less than $50. 

6. While medical insurance may be complicated, our message to Singaporeans is simple: with Medisave and the reformed MediShield, almost all Singaporeans would be able to afford their Class B2/C hospital bills.