With the introduction of MediShield Life, many people wonder if they still need their Integrated Shield Plan (IP), or buy one if they haven’t done so.
Here are five factors for consideration.
WARD OR HOSPITAL TYPE
In event of hospitalization, what type of ward or hospital would you opt for?
If your answer is Class B2/C Ward in a Restructured Hospital, MediShield Life may be sufficient.
However, if you prefer Class B1/A Ward or Private Hospital, MediShield Life is inadequate. This is because there isn’t any subsidy for these wards. Furthermore, MediShield Life payouts are pegged to the estimate expenses in B2/C Ward.
LIMITS AND SUB-LIMITS
MediShield Life has sub-limits on the payout for each treatment. For example, surgical benefit is capped at $2,000.
In comparison, IPs provide the option of “As Charged” coverage. Instead of being capped at a maximum of $2,000 for surgical benefit, one can claim up to the plan’s annual limit.
DEDUCTIBLES AND CO-PAYMENT
Under MediShield Life, the Deductible ranges from $1,500 to $3,000 and the Co-insurance ranges from 3% to 10%. This is the amount one would have to pay and cannot be claimed.
For Integrated Shield Plans, you have the option to purchase Riders to have both Deductible and Co-insurance fully covered.
WAITING TIME
The Emergency Departments of Restructured Hospital often have long waiting times.
There are cases where some patients originally intended to stay in Restructured Hospital. However, they ended up requesting for admission to Private Hospital for immediate treatment, because they wouldn’t bear the long waiting time.
This unplanned upgrade can result in a substantial increase in the cost of treatment. In absence of a IP, this may cause great financial distress.
MEDICAL INFLATION
Medical inflation tends to outpace general inflation.
New medical treatments and regimes can drastically increase healthcare cost, particularly in Private Hospitals.
Having an IP provides some piece of mind that you can afford such new treatments and regimes.
CONCLUSION
It is important to choose wisely, because more comprehensive coverage often comes with a higher cost.
If you’re comfortable with seeking treatment in B2/C Ward of Restructured Hospital, there may not be a need for an IP.
However, those who want the option of treatment in B1/A Ward or Private Hospital, buying an Integrated Shield Plan is generally recommended.
If you need more detailed advice, speak to your FLA Organization Financial Planner today!
