Wednesday, October 13, 2010

Increase in premium for Private Shield

The premium for private Shield plan has increased for the past few years. I am not aware about the actual increase. To hide the increase, some insurance changed the benefits provided, so that the policyholders cannot make any comparison.

I thought that the increase is due to higher claims. But, someone from the inside told me that the premiums are being increased to give a higher profit margin to the insurance company. I was surprised! I thought that any increase would have to be approved by the Ministry of Health, and they will check to make sure that the increase are justified (as Medisave money is being used).

For consumers who find the increase to be unjustified, it is better to switch back to basic Medishield. This advice is specially important for older people You can save more than 50% of the premium and also pay a lower deductible when you are treated in hospital. Read this article. http://tankinlian.com/admin/file.aspx?id=229

You also avoid the stress of having your claims rejected. Read about "rejected claims" in www.tankinlian.com/ask.aspx. Do not pay more in premium and still suffer from uncertainty and stress!
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2 comments:

William said...

Not necessary Medishield can be claimed during hospitalization. My parent is covered by Medishield. Some time cannot be cliamed as according to Medishield, "did not meet the minimum amount". Lately, happend again. So my mother hospital bill deducted from my Medisave.

October 14, 2010 9:35 AM
Spur said...

That's becoz the hospital bill is below the deductible amount --- this is the amount you have to pay first, in any policy year, before your Shield plan will start paying for your bills.

All shield plans have this deductible. In fact, for private shield plans, you need to pay higher deductible as you can stay in more expensive higher class ward. Private shield plans also have riders that will help cover the deductible, but is very expensive especially after 55 yr old and you have to pay for this using cash, cannot use Medisave.

If you are 80 yr old or younger, Medishield deductible is $1000 for C-Class ward and $1500 for B2-Class and above. You should stay in C-class to maximise the usefulness of Medishield.

Important Note:
Deductible is cumulative within each policy year. So even if your bill is below the deductible, you should still claim from Medishield so that they will keep track.

E.g. First time you warded in hospital. Bill is $800, so Medishield cannot cover this. But still claim.

3 months later you warded again for followup operation. Now the bill is $2000. You claim from Medishield. They will use the first $800 + $200 from your 2nd bill to fulfill the deductible.

The remaining $1800 from your 2nd bill can then be analysed for cover by Medishield. You still need to pay 20% of this $1800 as co-insurance.

Don't worry, private shield plans also similar as above, except you pay at least 4-5 times more, and you get to stay in B1 or A-class wards.

October 14, 2010 1:57 PM

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