What is MediShield?

Last week, the govt was appealing to those 100,000 women (in particularly housewives) who have yet to take up MediShield. I would like to take the opportunity to explain why is this so.

So what is Medishield and its purpose? Under CPF website, it says:

" Medishield is a BASIC MEDICAL INSURANCE that helps CPF members & their dependents meet large hospitalisation costs. Members & their dependents are covered individually under the scheme. Medishield works most effectively for hospitalisation at Class B2/C level in restructured hopsitals.

Additional insurance coverage, including treatment in Class A/B1 in restructured hospitals or treatment in private hospitals, can be obtained by purchasing a Medisave-approved enhancement plan offered by a private insurer.

Medishield and IP premiums can be paid using Medisave, up to $800 per insured person per policy year. For insured members who are 81 years (as of age next birthday) and above, the Medisave withdrawal limit is $1,150 per insured person per policy year from 1 Dec 2008."

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So a few simple questions are:
1. Are you or your loved ones covered by the basic Medishield?
2. Have you upgraded your basic Medishield to a private insurer under the "as-charged" plan? Or rather, have you upgraded your family's protection against hefty medical bills in the event of a long illness or a serious accident?

Reasons being:

- Do not under-estimate the hospitalisation fee in Singapore. As our country continues to drive to become the medical hub of Asia, our medical cost is expected to increase gradually.

- What are the chances that you or your loved ones will end up in hospital for some reason or another? I do not know. But I definitely do not want to take chances and fight against the hospital bills with my life savings , or worse still; beg, borrow, or steal? Do you?

- And do you know that the money under your Medisave Account can never be withdrawn in cash even when you retire?

Solutions:

- Medishield is a good option to transfer the risk away. BUT the basic plan is probably insufficient for large hospital bills. The table below shows the limit under the basic plan for some of the items.

- By upgrading to an “as charged” plan, it covers the amount as charged, and is not submitted to a sub-limit for individual items (e.g. surgery, room and board, investigation) in the hospital bill. It is useful if you wish to be treated in a private hospital where the charges can be quite high.

If you are serious about providing family security for yourself or for your loved ones, taking responsibilities of the potential hospital bill is the first step you should take. Do give me a call at 9876-0237 if you are keen on improving your current status.

Some things are worth waiting for. But many things cannot wait!