Catastrophic Illness Insurance Above 80

19 May 2005

As part of the MediShield reform which will be implemented from Jul 1, 2005, MOH and CPF Board have decided on two policy changes which will make it easier for elderly Singaporeans above the age of 80 to pay their hospitalisation expenses.

First, from Jul 1, Medisave can also be used to pay for approved catastrophic illness insurance premiums above 80. To do so, policyholders can draw on their own Medisave or that of their immediate family members (spouse, children and grandchildren).

Second, MediShield Plus policyholders may get to enjoy insurance coverage beyond the current maximum age of 80, once the scheme is tendered out to a private insurer. As part of the tender, the CPF Board will allow private insurers to specify the maximum age in their bids, with the flexibility to extend beyond 80 if they so wish. The duration of coverage will then be set according to the age indicated by the successful insurer.

(A) Use of Medisave for premiums above 80

Earlier this year, MOH announced changes to the Medisave-approved private medical insurance schemes (PMIS). With these changes, the PMIS will be restructured as integrated plans which incorporate the basic MediShield. These integrated plans will start on 1 July 2005.

All policyholders insured under these new integrated plans will be able to use their Medisave to pay premiums above age 80, subject to the prevailing Medisave withdrawal limit.

Currently, withdrawals from Medisave for insurance premiums above 80 are not allowed.

(B) Maximum coverage age for Medishield Plus

To speed up the development of the private insurance market, MOH had earlier announced that CPFB will be spinning off its existing MediShield Plus portfolio, in its entirety, to a private insurer through an open tender.

Like most other medical insurance plans in the market, MediShield Plus currently has a maximum coverage age of 80 years.

Depending on the bid submitted by the successful insurer, MediShield Plus policyholders may thus stand to benefit from an increase in the maximum coverage age once the scheme is privatised.

For more information, please visit the webpage on the Medishield Reform 2005.