Come 1st Mar 2013, there will be changes made to Medishield which will affect 92% of the population. Some of these changes are good while some may not be as welcomed.
So what are the changes and what will they mean to you? This article will address some of your questions.
In a nutshell, Medishield’s coverage period will be extended, and the claim limits and benefits will be increased. Personally, I believe these changes would especially benefit the elderly and newborns.
Here are the good news:
1) Maximum entry age of 75 years old will be removed. This will help the healthy uninsured elderly to apply for MediShield
2) Coverage age will be increased from 85 to 90. This allows the elderly to receive continued coverage as our nation’s life expectancy increases.
3) The annual claim limit will be increased from $50,000 to $70,000 and the lifetime limit from $200,000 to $300,000.
4) Medishield coverage will be extended to include short-stay wards in Emergency Departments.
5) Inpatient psychiatric treatment will be covered at $100 per day up to 35 days per year.
6) Newborns will be covered for congential and neonatal conditions. For more details, read Medishield to cover newborns for congenital conditions.
Now for the not so good news,
With the enhancement of Medishield benefits, premiums and deductibles will also be revised upwards. It is also to keep pace with the rising medical cost and growing number of claims over the years.
7) The annual deductibles will go up by $500 – for B2 ward from $1500 to $2000 and C ward from $1000 to $1500. Deductible refer to the amount that patients need to pay before insurance kicks in, so this means we will have to pay for a larger portion of the bill.
8) Premiums will be also go up – for those aged 65 and below, the annual premium increase will be up to $120, and for those above 65 years old will face increase of up to $252 annually.
How will these changes affect me?
Basically there will be better, longer Medishield coverage but it will also cost you more each year.
These changes will take effect from 1st March 2013. All CPF members paying for MediShield and Integrated Shield Plan policies will receive a notification letter from CPF Board in February 2013 notifying them of the premiums payable.
Currently, there is a Medisave withdrawal limit of $800/yr for people aged 80 yrs and below and $1150 for people above 80 yrs. Any excess of premiums above the limit will be payable by cash.
To help the elderly cope with the increased premiums and minimise the need to fork out cash for the premiums, there will also be a change in the Medisave withdrawal limits.
9) The Medisave withdrawal limits for MediShield and Integrated Shield Plans premiums will be increased from $800 to $1,000 for those aged 76 to 80 and from $1,150 to $1,200 for those above age 80.
To minimise the financial premium impact of the Medishield increase in 2013, the Government will also provide one-off top-up to the MediSave Account, which ranges from $50 to $400. For those who are 66 years old and above, they will enjoy additional Medisave top-up of $250-$450 under the Annual GST Voucher program.
What if I have an Integrated Shield Plan (i.e upgraded my medishield)?
If you have previously upgraded your shield plans, these private Medisave-Approved Integrated Shield Plans from AIA, Aviva, Great Eastern, NTUC Income and Prudential will also increase their annual premiums, as MediShield is the underlying
integrated basic plan. Please check wth your respective insurer for the revised premiums.
If you are thinking about the increased deductibles and whether it can be covered, not to worry. Private insurers will also enhance their cash riders accordingly so you can still enjoy full cover from the 1st dollar if you purchase these riders. (and yes, premiums will increase as well)
I hope the above clarifies on the questions you have. For more questions and information about the Medishield changes, you can visit the MOH FAQ website here
To Your Success and Happiness,
Yong Hui
