Deductible under Shield plans

QUESTION:

I am currently a IncomeShield Plan B policyholder and will like to seek some clarifications on how claims are processed under IncomeShield.

An agent shared with me the attached article. It is taken from Business Times. It was doing a comparison on the payouts from the different Insurers. I was very surprised that most of the insurers, including Income does not pay a cent in the example where a policyholder stays at Mt Elizabeth for 2 nights.

Could Income explain how the claims are processed? For example, what items will be considered for the deductible. Lastly, if the policyholder had bought the IncomeShield rider, how does it helps in this example?

ANSWER:

All the Shield plans are required to have a deductible, representing approximately 5 days of hospital stay. The principle is that the patient should pay for the first 5 days, and the insurance will pay for 90% of the bill in excess of the deductible.

This condition is imposed by the Ministry of Health.

We offer a rider that charges a separate premium (to be paid by cash) that will cover the deductible and the balance of 10%. Many people have opted to buy this rider.

Tan Kin Lian
CEO, NTUC Income

Private shield plan can cost up to $3,500 per year

Customers compare the coverage offered by private shield plans. They think that the higher coverage, the better the plan.

Here are a few important facts:

- in most cases, the higher coverage is not needed, especially if the patient is treated in the appropriate ward in a restructured hospital.

- a plan that offers a higher coverage can cost up to 60% more in premium.

For example, under plan A, a plan that pays "as charged" will cost $3,500 per year at age 80. NTUC Income offers a similar plan that charges a premium of about $2,100 at age 80, ie $1,400 lower. Our plan pays the same amount for most of the typical hospital stays.

Private Pension Plan - opt out scheme

Prime Minister Lee has announced that the CPF is studying an opt-out pension plan for CPF contributors. The aim is to encourage CPF members to invest in a pension plan that can provide:

- a better return than CPF interest rate
- well diversified
- low charges.

The Combined Fund from NTUC Income fit into this description. By investing in the Combined Fund, the CPF member can get the benefits of the proposed opt-out plan and enjoy the freedom of choice.

Claim 100% of ward fees

Snow White asked this question: "What is your advice regarding the enhanced medical plan, where policyholders can claim 100% of the ward fees (less co-insurance) even if they opt to stay in better wards like B1 or A-wards? The premium are almost 3 times of the original Medishield plan. Should I stay with a hospital and surgical plan."

My reply:

- the limits provided under Incomeshield plan (from NTUC Income) is suffient to cover the charges in B1 and A ward in restructured hospital.

- our premiums are about 50% to 100% higher than Medishield, but are lower than the medical plans provided by other insurers.

- 800,000 people are insured with Incomeshield (giving the largest market share)

- it is better to buy an Incomeshield plan earlier, as it provides lifetime coverage. The H&S plan is a yearly renewable plan. You may not get the coverage when you leave your present employer.

Test your Logic: www.income.coop/logic9

Test your logic.

Try the Logic9 game at www.income.coop/logic9. This game is similar to the game called SuDoku, which is the craze in many countries.

You are to fill the blank squares with the digit 1 to 9, so that it is not repeated in any row, any column or any box (3 x 3).

For the easy version, you have to fill 3 out of 9 boxes. For the more difficult verion, you have to fill 4, 5 or 6 out of 9 boxes.

Have fun.