sure got big change 1 lor.. the existing premium for 31-40 is 105, the new one is 310.. a freaking 205 dollar increase..
the existing IHP = medishield (A) + private/upgraded ward benefits (B)
now "A" increase so much liao.. the premium is Up gao gao :S :S
In theory the increase in integrated shield plans should not be so high because they "top up" Medishield. For example, Medishield used to cover $450 per day of daily ward and treatment charges (normal ward). An Integrated Shield may cover $1,000 per day of the same. Now Medishield Life is covering $700 per day, so the private insurer should be covering less, $300 instead of $550.
But frankly I am also quite surprised at how high the committee's premiums are. According to the benefits table, Medishield Life is comparable to the current
NTUC IncomeShield Plans B to C. They have policy limits of $100k per year and no lifetime limit, no maximum coverage age, $2k or less deductible (for ages 80 and below), and co-insurance of 10% or less.
And yet, the yearly
premiums for Plans B and C are only $121 to $167 for ages 31-40, about half of $310.
I thought it might be because of the age smoothing thing where they are trying to have people pay more in their younger, wage-earning years and less in their retirement years, but not really, premiums for advanced ages are also higher than the Plan B-C's (before subsidies).
If I have to point to anything, then it is the people with pre-existing conditions and/or who have exhausted their Medishield due to high expenses. But they have also said that there aren't that many such people.
The only reprieves are that subsidies will reduce this for many people, the increase will be spread out over 5 years, and there is an additional 1% employer contribution to Medisave starting next year. But I am definitely concerned about whether the premiums are higher than they should be and whether the private insurers will take the chance to pad their profits.
