The local press publishes a video and article citing certain analyst views that private health insurance should be reformed including:
1. Increasing portability of insurance schemes when a worker moves from one company to another;
2. Expanding coverage for those with pre-existing conditions; and
3. Offering discount on premiums if an insured individual continues to remain healthy after a number of years, for instance.
My general view as to medical insurance for Singapore citizens and permanent residents is as follows:
a) purchase maximum coverage available under Integrated Shield Plans and Medishield Plus Plans, as these are regulated to prohibit insurers penalizing insureds for pre-existing illnesses that occur year to year. Medical insurance purchased under Integrated Medishield Plans are typically lower cost as compared to non-medishield linked insurance from the private insurance market. For more information on Medishield, visit the CPF website on Understanding Medishield and Medisave.
b) negotiate or select employers that provide corporate inpatient and outpatient benefits. Inpatient benefits currently often exclude pre-existing illnesses, and therefore Medishield insurances previously purchased should not be cancelled just because the employee is on a employer sponsored plan. For larger companies or companies that are offering better than average medical benefits, pre-existing illness are sometimes also covered.
c) private medical insurance to supplement a) and b) above, should be considered if treatment in private hospitals is considered essential, and if coverage not typically offered by employers' e.g. maternity is also required. This type of private medical insurance can be several times the cost of Medishield linked insurances, however, and the benefits versus this additional cost should be weighed carefully.
If multiple insurance exists to cover an ailment, the order of priority of claim should be:
1. Claim from the employers' medical insurance until this is exhausted.
2. Claim from private medical insurance if this has been taken up
3. Claim from Medishield (there are often lifetime limits on Medishield insurances) and use of Medishield should be avoided and preserved as much as possible.
4. FInally, Medisave (not technically an insurance) is the last resort.
For information on Medishield visit: http://mycpf.cpf.gov.sg/CPF/my-cpf/Healthcare/PvdHC3.htm
