MediShield: How covered are you?

Wow! Just met Sherman Dass (my financial planner) and Kelly (my insurance agent from Prudential) recently to review my financial status and insurance coverage. Sherman has been a Financial Planner (he covers alot of areas, more than just insurance. He can help you prepare a Will if you need too) for more than 2 years and Kelly has been my insurance partner for more than 2 years. In fact i started with her husband my first ILP policy as early as 8 years ago.

After our meetings, one point that set me thinking was, "There are loop holes in my MediShield plan!".

If you do not know what is MediShield, i quote a para from CPF website (http://mycpf.cpf.gov.sg/Members/Gen-Info/FAQ/HealthCare/MSH.htm):

"MediShield is a catastrophic medical insurance scheme that will help you and your dependants meet the costs of treatment for serious illnesses or prolonged hospitalisation. From 1 July 2005, MediShield will pay more of the large hospital bills at the Class B2/C level with the higher claim benefits."

So you see, MediShield seems like a term insurance that our Govt has in good intention for our citizens. The basic MediShield plan can be paid using our CPF MediSave (so not so painfully on our wallets).

Who ever provides the coverage is not really an issue as long as they continue to provide the coverage @ cheaper price. During my recent read up and review, i'd realise that my MediShield do not cover 100% of my possible hospital and surgical (H&S) bills!

Surprise! ;-)

You thought your plans covers 100% of all the possible H&S bills? Check your policy's small print again. "As charged" plans is still not 100% mind you.

There are 2 components of MediShield that you should pay some attention to:

1. Deductable. The amount stated under this item is something like our car insurance "excess". Which means, no matter how much is the bill, you have to pay this amount upfront to the hospital (and this is not claimable under your policy lor!). For e.g. if your hospital bill is $5,000 and your MediShield deductable is $3,000, you have to pay $3K to the hospital, and your MediShield covers your remaining $2K. When i write covers here, it is still not full coverage. Read my Point 2 below.

2. Co-Payment. This is the amount that you have to pay on the amount cover by your plan. Most plans quote 10% or 20% under this item. Using the earlier e.g. in Point 1 above, and assuming your co-pay % is 10%. If your MediShield covers $2K of the bill, in actually fact, your insurance company will pay only 90% or $1,800 of the bill. You will have to fork out another $200 to cover the rest of the bill!

Wah Lao! <Faint>

Why did we buy insurance in the first place? To ease our mind in case the worst really happen during our lifetime. What can be more worst than realising that your plan do not really cover what you assume will be covered when the worst really happens!?!? Die-lor.

If your deductable is $3,000 and hospital bill is $2,400, you cannot claim. If your next treatment or hospital stay is $2,900, you also cannot claim. Then you will start asking yourself why did i pay for the MediShield in the first place???

So check your policy statements again, especially on the Deductable Amt and Co-Payment % to achieve a peace of your mind. I just achieved mine. ;-)

As of now, the market that offers 100% coverage for H&S comes with a price. A price that you cannot use your CPF MediSave to pay. But it is worth considering paying that little bit more using cash to achieve real "100%" coverage. A good choice comes from NTUC Income at this point in time. I took up this one. (I don't get commission from NTUC Income mind you).

At the moment, my NTUC IncomeShield (Basic MediShield offered by NTUC Income) cost me $55, paid using my CPF medisave. I opted for the "as charged" plan called, Enhanced IncomeShield (Advantage), to enhance all other possible claim amount on alot of small small items in govt hospital. This cost me $136, paid using my CPF MediSave. Then i add on a rider @ $92 in cash to remove the deductable and co-payment component.

Sigh... peace of mind do come with a price.

If you are interested to find out more about this plan from NTUC Income, you may want to contact Sherman (kelvindass@ippfa.com) directly for a free consultation. Just quote my name in order not to confuse him on how you get his contact. (I want to highlight again that i do not get any commission from this intro or any subsequent deal that you may have with Sherman, k!)

H&S cannot be claim from 2 separate insurance companies at this point in time, not like the lump sum payment from our life policy. So check your H&S policy again, and again, for a peace of mind.


Have a good sleep, Cheers!

Leroy
"When I Stop Learning, I Stop Living"