Age Medishield Private Shield
Ward A
25 to 65 $5,755 $12,870
65 to 85 $12,263 $34,951
Total $18,018 $47,821
It will cost the insured a total of $18,018 to pay for the premium for Medishield from age 25 to 85 (assuming that the premium does not increase due to inflation). To insure for class A, the cost increases to $47,821. The difference is nearly $30,000.
In both cases, the patient has to pay the deductible and 10% of the excess (i.e. the co-insurance). The co-payments that has to be borne by patient is expected to be an additional 50% of the cost of premium.
If you wish to be treated under class A in restructured hospital, you must be prepared to set aside $72,000 in a lifetime. If you are treated in a subsidised ward B2, your lifetime cost is $27,000.
For the majority of people, it is better to be insured under Medishield, as it covers the cost of treatment in a subsidised B2 ward. You can save a lot of money in insurance premiums, which can add to your retirement savings.
Most people are likely to be hospitalised not more than 2 times before age 65. At the time of hospitalisation, the can still decide on being warded in B2 or be upgraded to a higher ward. If they are upgraded, they can pay the difference from their savings.
If you buy a Private Shield plan, about 30% of the premium is taken away to pay the marketing and administrative expenses (i.e. $15,000 under plan A). You pay this cost without any increase in benefit.
The above figures are based on the current cost and ignore the time value of money. If inflation and investment yield is taken into account, the difference will be much more than $30,000.
Tip: Enjoy the government subsidy under B2 ward. Insure for Basic Medishield and pay a lower premium. Save $30,000 over a lifetime.
7 comments:
Sometimes status is important. If you have a certain position in the company you cannot expect your colleagues and subordinates or other company directors to come visit you in a B1 or B2 ward.
If you can afford it, by all means, spend the money and get your "status". For the majority who are struggling to have enough money for retirement, forget about "status" and go for the inexpensive option.
Anyway, when the time comes and you need to have "status", you can upgrade and pay the difference from your savings.
Better still, no need for your colleagues to visit you in hospital. Better for them to visit you after you are discharged!
Can the funds in the MA be taken out? If not, can spend more lah. After all it is your money but you cannot withdraw this amount for the rest of your life.
At the rate Means Testing is going, B2 will no longer be an option for many of us. :(
Also, when the time comes to upgrade the shield plan, you may develop something uninsurable or the insurance companies may throw in all sort of exclusions...
8.40AM:"...Sometimes status is important.."
2003 - My late sister was admitted to B2 of NUH.
Her surgeon was a Professor.
Hi Tan,
Keeping these limits lower also keeps the premium rates lower. All of the guidelines of the plan, including the lifetime cap come into play when insurance companies set the cost of the insurance plan. A plan richer in benefits is going to cost more.
Florida Health Insurance
Thanks.
My friend late HR directress was warded in C class ward, and she was okay with it.
Post a Comment