Understanding Integrated Shield Plans
Key Takeaways
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An Integrated Shield Plan (IP) is an optional health coverage provided by private insurance companies
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Consider the coverage you need based on the hospital ward and choice of hospitals you want to stay in, or you'll end up paying more premiums than necessary
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If you are not sure you have an IP, check by logging in to the CPF Board website
An IP provides coverage on top of your MediShield Life.
Different types of IPs provide different coverage. Some cover you for a higher-type ward (A/ B1) in a public hospital while others cover admission into a private hospital.
An IP comprises two parts:
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MediShield Life which you are already covered for
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An additional private insurance coverage component offered by a private insurer
Your MediShield Life is fully paid for from your MediSave account. You will need to top up using cash or MediSave for the additional premiums for higher private insurance coverage.
If you are using MediSave to pay for the additional private insurance component of the IP premium, you can utilise up to the prevailing Additional Withdrawal Limits. When you reach the maximum withdrawal limit for MediSave, you have to pay the rest of the premiums in cash.
Should You Upgrade To An IP?
Are you wondering if you should just have MediShield Life, to upgrade to an IP or to keep the IP you already bought?
There are two things to consider:
Your Comfort Level With The Types Of Hospitals, Wards And Doctors
Do you wish to stay in a Type A/ B1 ward in a public hospital or a private hospital? Do you want to be able to choose your doctor?
Your Budget
Can you afford the IP premiums in the long term especially when the premiums rise with age?
If you can no longer afford or do not wish to continue paying the premiums for your IP, consider switching to a plan that provides coverage for lower-ward classes with the same insurer – this would not need additional underwriting. Or you could cease your IP and be insured under only MediShield Life, which does not exclude pre-existing conditions.
Private insurers provide optional products called riders that are designed to cover part of the co-insurance of your IP.
Riders may also provide coverage for additional treatments, such as cancer drug treatments not covered under MediShield Life and IPs. But premiums for riders can be more expensive than IPs' as a result.
Even with a rider, you will need to pay a deductible and a co-payment when you make a claim.
The deductible is the fixed amount you pay each policy year – ranging from $1,500 to $3,500, depending on ward class – before any payout from your IP. The co-payment is 5% of the bill, capped at a minimum of $6,000 per year.
The premium for riders must be paid with cash. They cannot be paid using MediSave.
Rider premiums increase as you get older.
More comprehensive coverage is typically accompanied by higher premiums. Consider balancing the benefits of a rider with its long-term affordability.
Assess whether your health insurance aligns with your needs, and make informed decisions about your coverage using the Health Insurance Planner.
Are You Covered?
Not sure if your current health insurance is an IP? You can check by logging in to the CPF Board website.
