Integrated Shield Premiums

20 January 2014

Question No. 1504

Name of Person: Mr Zainal Sapari, MP for Pasir Ris-Punggol GRC

Question

To ask the Minister for Health (a) over the last two years, what is the number of Singaporeans above 65 years old who downgraded from an integrated MediShield Plan to Basic MediShield; (b) whether the Ministry can review the Medisave withdrawal cap to allow for the premiums of the integrated MediShield plans to be fully paid by Medisave; and (c) whether a cap on the premium that can be charged for the lowest integrated plan can be introduced.

Answer

1    MediShield is a basic health insurance scheme designed to help Singaporeans with the cost of subsidised Class B2/C bills at public hospitals. Integrated Shield plans, which are offered by private insurers, provide top-up coverage beyond MediShield for hospitalisation in higher ward classes, such as Class B1, A wards and private hospitals. In 2011 and 2012, the number of Integrated Shield plan policyholders aged above 65 years old who downgraded to basic MediShield was 1,400 and 1,900 respectively. This is about 2% of the Integrated Shield plan policyholders aged above 65 years old each year.

2    Medisave is designed for basic healthcare expenses, such as basic health insurance coverage for subsidised wards, and contribution rates and withdrawal limits are set accordingly. In line with this principle, Medisave withdrawal limits are set to allow basic MediShield premiums to be fully paid for using Medisave, and are reviewed regularly.

3    As Medisave is meant for basic healthcare expenses, we have pegged the withdrawal limits to cover the premiums of the basic MediShield plan. Hence, Singaporeans who opt for Integrated Shield plans should consider carefully whether such plans are appropriate for them as they may need to pay for some part of their premium in cash. Nonetheless, to help Singaporeans reduce their out of pocket payments, we increased the Medisave withdrawal limits by $200 for those aged above 65 on 1 November 2013, to up to $1,400, which is adequate to cover a significant portion of the premiums for the more affordable Integrated Shield Plans.

4    My Ministry will continue to ensure that basic MediShield remains affordable and provides adequate coverage for Singaporeans. In conjunction with the introduction of MediShield Life, MOH will review the Integrated Shield Plans and how we can better help Singaporeans make informed decisions. As part of the ongoing public consultation process for MediShield Life, the MediShield Life Review Committee will also be consulting members of the public and key stakeholders such as insurers on their views concerning Integrated Shield Plans, and will surface recommendations for the Ministry’s consideration.