Dear Mr. Tan,
I'm looking at increasing and paying for the coverage for my parents. They're both around 70 and are now on Incomeshield standard plan B (capped). I'm hoping to upgrade to either plan A or P and possibly the enhanced plans (as-charged).
REPLYI've done the sums and found the differences in total premiums up to age 85 is large, i.e. an additional $ 37,000 for each parent. While I'd still like to get them the best, I'm thinking whether this is money well spent, relative to the extra benefits they bring. In particular, do one really need the extra benefit of as-charged vs. a capped plan?
Your findings is similar to what I said in my book, Practical Guide on Financial Planning. Medical insurance is very expensive for old people.
There is no need to buy expensive medical insurance for elderly people. They can get good medical attention in subsidised B2 and C ward, which is largely covered by basic Medishield. The quality of care in the subsidised wards is quite good. There is no need for you to pay $37,000 on expensive medical insurance, which provides medical attention that is not much better.
I have also changed to basic Medisheild (without any rider) to reduce the premium cost for my own medical insurance.
2 comments:
Mr. Tan, are u covered under B or C in the basic medishield?
Just stick to Incomeshield standard B plan, and stay in B2 wards (6-beds, non-aircon). My relatives and I have ever stayed in B2 wards before. In hospitals, it is better to stay in non-aircon wards for better air circulation. Ntuc doesn't sell the standard C plan anymore. Those already on C plans can just continue (lifetime).
I found the medical care in B2 wards to be good --- you will be first examined and diagnosed by a senior consultant, and he will follow your progress every 2 days or so. Daily basis there will be 1 or 2 MO's or junior consultant to carry out any prescribed procedures and look at your progress and case file. Nurses are so-so (many foreigners & I suspect this is stepping stone to Oz or US) -- but situation will be the same in A-class ward too. Helps if you are able to chit-chat with some of the nurses and establish rapport.
The senior consultant will be the one to certify if you're ok to be discharged. Definitely they will ask you to come back at least 2 or 3 times for out-patient followup. You can bochap if you want, but at least go for the 1st one.
The standard Incomeshield allows you to also claim for this out-patient specialist check-ups for 90 days after discharge. The standard B plan is a reasonable option for covering hospital bills, cancer treatments and kidney dialysis with lifetime coverage.
The cheaper basic Medishield from CPF is for those with tight budgets or who may be able to self-insure. It is meant to cover the bills of C-class wards (8-bedded, non-aircon). C wards are a bit more open than B2, but facilities are similar. Only thing I personally find is that C wards tend to be more noisy & crowded, so for light sleepers or those who need solitude may find it uncomfortable.
The main disadvantage of Medishield is that coverage stops at 85 yrs old. So if you come from long-lived family history, then need to stock up savings for hospital bills. Anyway who knows? Govt may extend the age cover yet again. Previously was only until 80 yrs old, now it is 85 y.o.
Medishield also doesn't cover the out-patient specialist checkups just before being warded, and after discharge (90 days before & 90 days after). It is expected that those on Medishield will go to Polyclinics first. Any required referral from polyclinic to see specialist will be on subsidised rates and relatively low-cost.
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