New rules for Integrated Shield Plans
An integrated shield plan is a type of health insurance policy that is provided by private insurance companies. Under this plan, you are provided with higher coverage for hospital bills that you may have incurred in private hospitals or talking to a specialist of your choice. Medishield life coverage is a generic health insurance plan that helps pay for hospital bills and selected treatments. Also, medishield life plans are included in integrated shield plans (IPs). In March of 2021, Medishield life went under a series of changes that include higher claim limits and changes in deductibles.
Before, those seeking treatment who have bought full IP riders would not be subjected to pay for the medical expenses out of their pocket. However, under the new guidelines set by the Ministry of Health, insurance companies can now only sell “partial-riders” that requires the policyholder to pay 5% of their medical expense from their pocket. Why has this new rule been imposed? There has been a significant rise in the cost of medical expenses which has caused a major issue in Singapore. This is a substantial problem as Singapore has a maturing population. As the population grows in age, the interest for good health insurance services also increases which has resulted in the growing prices in health care. One of the causes of the growing prices has been due to integrated shield plans that have full riders. A rider is an optional coverage one can add to their life insurance policy at an additional cost. It is believed that this may have been subjected to over-consumption of the riders by the policyholders that has caused overcharging of medical services. The idea is to try to move away from full riders that can help encourage the people to be reasonable and carefully think about the need of medical treatment and its cost. In return, this will help maintain the costs of medical expenses and make sure that the health insurance premiums are affordable for a long period for everyone.
How does this change affect the policyholders? With this new rule set in place, policyholders will need to pay a portion of their medical bills, at least 5%. But, the good part is that it will be capped at S$3,000 should you choose the panel doctors provided by your insurer. Although there may be higher out of pocket expenses for the policyholder, the benefit is lower insurance premiums for all. Having health insurance has become a vital necessity in our day and age with the rising number of diseases. As the premiums of an integrated shield plan increase with age, it is up to us to decide if the cost of our medical needs justify the premiums we pay and if or not we can afford them as we get older. This change has been induced to make sure every person has a chance to get the best medical treatment for their ailments without having to worry about breaking into their savings to pay for the medical bills.
You can even visit our Social sites: Facebook:- https://www.facebook.com/PrudentialSingapore/ LinkedIn:- https://www.linkedin.com/company/prudential-assurance-company-singapore/ YouTube:- https://www.youtube.com/channel/UCWs_Qg2Rahok4kORir5w4eQ Instagram:- https://www.instagram.com/prudentialsingapore/?hl=en
Thank You