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March 2014

MediShield Life - So What?

 

The recent announcement of Budget 2014 has put the Healthcare needs of Singaporeans into focus, in particular the cost of it. Healthcare cost is expected to go up due to inflation over the years and those expected to take the biggest hit are the elderly and those without medical insurance. 

 

However, the soon to be announced MediShield Life is supposed to address all these issues to ensure that all Singaporeans are taken care of in terms of Healthcare cost. 

 

In this issue of our Newsletter, we will taking a sneak preview of what MediShield Life can bring to us and most importantly, how it may affect all of us. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Why improve MediShield?

 

One of the concerns that Singaporeans have is the cost of Healthcare. In a recent survey conducted by GFK, 65% of respondents in Singapore said that inflation and high prices are among their top 3 concerns. Recession and unemployment (43%), followed by cost of Healthcare (42%) trail as the next greatest worries. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The next concern is the exclusion of MediShield for elderly above age 90 as the policy will expire by then. This leaves the older Singaporean vulnerable to high Healthcare costs. This is also the group which requires the most Healthcare needs. 

 

Lastly, MediShield, being a medical insurance, do exclude certain groups of people who are medically un-insurable. This limits the usefulness of MediShield for the most vulnerable. 

 

MediShield Life - The Proposed Changes

 

To address the concerns, MediShield Life will replace MediShield, with the main changes being

 

1. Better coverage through higher MediShield payouts. This will ensure large bills being more affordable. 

2. To provide coverage for people above age 90. This will give people the peace of mind even when they age, knowing that their medical insurance will not expire. 

3. To provide coverage for all, even if we have pre-existing illnesses. This will ensure coverage for all, regardless of our life and health circumstances and how they change. 

 

MediShield Life - The Trade Offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With better benefits and coverage, the premium will be expected to increase. The increase might be significant as the enhancement will definitely result in higher payout. 

 

To ensure the affordability of MediShield Life during old age, there will be slight adjustments to the premium structure. This would mean paying more while you are still working to off-set some of your premiums when you are in old age. 

 

With the pending changes in MediShield, there will definitely be more speculation on how MediShield Life will benefit Singaporeans young and old. We will definitely be there to update all of you when it's announced, to keep all of you updated with the latest changes in the insurance industry.