MediShield Life

[path_of_rainbow]

With Medishield Life in end 2015, does our existing Medishield plan with NTUC, GE, etc ceases ?

 

[Lewis.T]

Possible scenarios would be it could be changed to give you more benefits, it would stay the same, or it could be gone entirely.

These outcomes are just my own views, I don't have any information regarding the matter; whatever the case, still better to have something now than not.

 

[pohu]

Seems like a lot of people are confused of the announcements and I am under impression that younger Singaporeans are going pay higher premium for the proposed new health insurance scheme given the growing ageing population we are facing.

But one of questions is with the declining birthrate are future generations gonna bear even higher costs to support the scheme?

 

[NiteX2]

With Medishield Life in end 2015, does our existing Medishield plan with NTUC, GE, etc ceases ?

No, it will remain. Enhancements maybe made to the plans though

 

[path_of_rainbow]

heard that this medishield life is compulsory and there is no option to opt out....

 

[anfielder]

Seems like a lot of people are confused of the announcements and I am under impression that younger Singaporeans are going pay higher premium for the proposed new health insurance scheme given the growing ageing population we are facing.

But one of questions is with the declining birthrate are future generations gonna bear even higher costs to support the scheme?

You're basically paying more now (while you have income to support the premiums) so that you will pay less when you're older and retired. I don't think it's to support the older generation.

 

[lzydata]

This universal coverage will come at a higher cost which will be shared among the government, policy holders, and those with pre-existing conditions. The MediShield Life Review Committee says the Government is expected to fund more than half of the cost, while the premium increase for policy holders should be no more than 3 per cent from current premiums.

The committee said those with pre-existing conditions will have to pay higher premiums reflective of their higher risks, at an additional 30 per cent for 10 years. And thereafter, they will pay the normal premiums relevant to their age group.

- Up to 3% increase in premiums for existing MediShield policy holders - xinmsn News

Indicating that there will continue to be a role for additional health coverage, Dr Khoo Kah Siang, president of the Life Insurance Association (LIA), said “it is our commitment to work closely with policymakers, the healthcare sector and individuals to bridge the protection gap in Singapore”, indicating that not everyone has adequate coverage.

In particular, consumers need not worry about a massive increase in premiums for the private insurance top-up component of the scheme, also known as Integrated Shield Plans (IPs), said Dr Khoo, who is also chief executive of Great Eastern Singapore.

MediShield Life: Insurance sector sees little impact on its business | TODAYonline

Quote him first, as we would say in HWZ

 

[lzydata]

Besides quoting people like Dr Khoo who should know, or had better know, here's my theory of why premiums for integrated shield plans should not shoot up.

Policyholders on the Medisave-approved Integrated Shield plans retain the benefits and coverage of the basic MediShield tier, while enjoying enhanced coverage provided by their private insurers. Premiums are paid directly to the private insurers who will service all the policyholder’s needs. Similarly, private insurers will service all claims and sort out all back-end arrangements with CPF Board to include any payouts from MediShield.

- Medisave-approved Insurance | Ministry of Health

So we should distinguish between areas or levels of coverage that (1) were not previously offered by either Medishield or Integrated Shield plans, (2) were offered by Integrated Shield plans but not Medishield.

Type (1), such as the coverage for congenital and neonatal conditions introduced not long ago, is one of the things that will result in higher premiums across the board because private insurers did not previously cover these things before, so they just passed the costs on to customers.

For Medishield Life reforms, examples are lifting the maximum coverage age and the coverage of pre-existing conditions. Under Medishield or Integrated Shield plans, these people would have been uninsurable, so private insurers never had to take their costs into account. That's why it's fair that the committee proposed to still cover such people but charge them higher premiums for some time.

Type (2) would be like higher claim limits for bed and board, surgical procedures, chemo and such things i.e. the standard stuff of Medishield and Integrated Shield plans. Looking at the proposed benefits table, claim limits for a normal ward will go from $450 per day under Medishield to $700 under Medishield Life. And yet even NTUC IncomeShield Plan B has a higher limit than that, $1000.

Suppose you had this plan and had a hospital stay of $1000 a day. In the past NTUC Income would pay the $1000 first and then claim from Medishield $450 or whatever is applicable. (Medishield's pro-rationing and means testing makes it VERY COMPLICATED to know the true claimable amount. ) Now under Medishield Life it will pay the $1000 first but claim $700 from Medishield. The private insurer pays a higher premium to Medishield Life but is also paying less claims.

Another example is policy year claim limits and lifetime limits. Medishield's is $70k and $300k respectively. Medishield Life's is $100k and no limit, which is the same as IncomeShield Plan C; Plan B and up are already higher than that. When Medishield Life has no lifetime limit, private insurers are not going to offer two lifetimes'!

So I am optimistic that premiums will not shoot up, but of course the government needs to monitor the private insurers so that there is no price gouging. We can already see that private insurers have phased out non-as-charged Integrated Shield plans, so they are already prepared to compete at a higher level, for people who are prepared to pay for it.

 

[Lifeessentials]

here's my theory of why premiums for integrated shield plans should not shoot up.

Claims experience (shared by all policyholders) will increase as people with preexisting are more likely to file claims and this will affect the premiums.

 

[lzydata]

Claims experience (shared by all policyholders) will increase as people with preexisting are more likely to file claims and this will affect the premiums.

From what has been announced, those with pre-existing conditions will have to pay 30% higher premiums for 10 years.

There is also the factor of the previously uninsured and healthy, especially the young, who will also be paying premiums.