Why are the premiums for the integrated shield plans going to increase significantly next year?
The main reason is that Medishield Life now covers people with pre-existing conditions. These people were excluded previously. They now contribute to more claims. Most of these claims should be covered by Medishield Life (i.e. CPF) and should NOT impact on the portion paid by the integrated plan (i.e the insurance company).
Apart from these claims, it is likely that the increase in premium for the integrated plan is caused by the higher charges from the private hospitals.
An industry expert told me that the "as charged" plans could be abused. The hospital or surgeon could find reason to inflate the bills and the integrated plan pays for the inflated bills. The insurance companies are now trying to establish benchmarks for the operations. I hope that they can find the right solution.
In the meantime, it is better for budget concious consumers to stay with Medishield Life. If they are insured under an integrated plan, the premium could be 2 to 4 times of Medishield Life. They will still pay to pay the Deductible and Co-insurance.
Learn more about making the right choice from my video, tankinlian.com/learn