I have encountered several cases of low income people incurring large medical bills for treatment in private hospitals, and their insurance does not pay for the treatment.
Why did these low income people opt to buy expensive insurance (i.e. the integrated plans) to cover treatment in private hospitals?
Often, they were told by the insurance agent that they can upgrade to the integrated plan without paying any cash. Actually, the higher cost comes out of Medisave savings.
They were also told that there is a long waiting time for treatment in a subsidised ward that is covered by Medishield Life. If they upgrade to a private plan, they do not have to wait when they need treatment.
This is how many people opt for the integrated plan and pay a much higher premium.
Why did the integrated plan not cover the expensive treatment?
There are two types of situations.
First, when they upgrade to the integrated plan, they might have not declared any pre-existing illness. The consumers were not aware of this requirement. The insurance agent was in a hurry to close the case and did not ask the question clearly.
In some cases, the agent said that the medical condition was not important to be declared. It becomes a different story when it comes to a claim. The claim officer rejected the claim due to non-disclosure.
Second, the cover for the integrated plan might have lapsed due to oversight in paying the top up premium. There is a cap on the annual withdrawal from Medisave. The consumer has to pay the difference for the integrated plan.
Many consumers overlook to pay the top up premium. The cover for the integrated plan lapsed. If they apply to reinstate the policy, they would be subject to exclusion of pre-existing conditions.
I have come across a few cases of rejection of claims for expensive treatment in private hospital from low income people. the bills came to several tens of thousand dollars.
For low income people, it is wiser for them to stay with Medishield Life. They should not worry about the waiting time for treatment in subsidised wards. The hospital will give immediate treatment for medical emergencies. The long waiting time applies only to non-critical cases.
Tan Kin Lian
Why did these low income people opt to buy expensive insurance (i.e. the integrated plans) to cover treatment in private hospitals?
Often, they were told by the insurance agent that they can upgrade to the integrated plan without paying any cash. Actually, the higher cost comes out of Medisave savings.
They were also told that there is a long waiting time for treatment in a subsidised ward that is covered by Medishield Life. If they upgrade to a private plan, they do not have to wait when they need treatment.
This is how many people opt for the integrated plan and pay a much higher premium.
Why did the integrated plan not cover the expensive treatment?
There are two types of situations.
First, when they upgrade to the integrated plan, they might have not declared any pre-existing illness. The consumers were not aware of this requirement. The insurance agent was in a hurry to close the case and did not ask the question clearly.
In some cases, the agent said that the medical condition was not important to be declared. It becomes a different story when it comes to a claim. The claim officer rejected the claim due to non-disclosure.
Second, the cover for the integrated plan might have lapsed due to oversight in paying the top up premium. There is a cap on the annual withdrawal from Medisave. The consumer has to pay the difference for the integrated plan.
Many consumers overlook to pay the top up premium. The cover for the integrated plan lapsed. If they apply to reinstate the policy, they would be subject to exclusion of pre-existing conditions.
I have come across a few cases of rejection of claims for expensive treatment in private hospital from low income people. the bills came to several tens of thousand dollars.
For low income people, it is wiser for them to stay with Medishield Life. They should not worry about the waiting time for treatment in subsidised wards. The hospital will give immediate treatment for medical emergencies. The long waiting time applies only to non-critical cases.
Tan Kin Lian
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