Medishield Upgrade

If you’re on the old Medisave plan, do consider upgrading it to the more comprehensive and beneficial “AS CHARGED” plans that’s currently available to you.

What does AS CHARGED mean?
You get admitted into hospital and all your medical bills (less the Deductible and 10% Co-Insurance) will be paid for by the plan up to the maximum limit you have opted for. This amount is currently up to $300,000 or $500,000.

The Wisdom of the AS CHARGED plans:
1. Premiums are paid from your Medisave account,
2. Premiums are extremely low compared to the insurance amount,
3. Higher cover and life time cover than the basic plan– You shall have a $300,000 or $500,000 ‘account’ to pay your hospitalisation bills from with the upgrade,
4. You are not subjected to the sub-limits of the basic Medishield plan that imposes a limit on the amount you can claim,
5. It goes with you at every stage of your life – even when you stop working, and are no longer covered by your employer, you will have this plan covering you (of course you must still be paying the premiums),
6. You can include your spouse and children in it and still use your Medisave to pay for them,
7. Relief yourself of the burden of a hefty hospital bill (whether in times of economic uncertainty or not, hospital bills can literally kill you). The last thing you want is a bill so big that it cripples you financially.

You now have the option of including a rider that will help cover even the Deductible and the 10% Co-insurance.

What is a deductible? Well the concept is similar to the excess you pay in the event of a motor accident. This however is charged by the hospital and the amount is dependent on which class of hospital care you choose.

If you choose the C class wards, then you’ll bear an ANNUAL DEDUCTIBLE of $1,500 from your medical bill. If you choose A Class care, then you’ll have to bear the first $3,000 of the hospital bill.

And this amount shall be paid for in cash and/or your Medisave, or both.

Besides this you’re also required to pay the co-insurance
That’s an amount equivalent to 10% of the hospital bill AFTER subtracting the deductible from it. And can amount to quite a bit, if the bill is a hefty one.

And the wisdom of purchasing a rider to cover both these items?
1. You could cover 100% of your bills – any bill from the most minimum up to $300K or $500K can be easily dealt with
2. You shall be reimbursed for the cash or Medisave you used to pay for the deductible and the co-insurance
3. You can choose the best possible hospital care for yourself and your loved ones, without worrying about the medical cost
4. Peace of mind

How is this calculated?
Let’s assume a bill of $25,000 and an A Class ward. The deductible is $3,000
$25,000 - $3,000 = $22,000
Of which you’ll still have to pay the co-insurance of 10% or $2,200
$22,000 - $2,200 = $19,800

So without the rider the insurance company pays $19,800, and you’ll pay $5,200
With Rider, the insurance company pays the full $25,000; you pay nothing.

As this risk is borne solely by the insurance company, you’d be using CASH to pay for this rider.

So there, in a nutshell – the benefits of upgrading your Medishield plans to one offered by the private insurance companies. Call me if you need more details or would like to discuss an upgrade.