Part of the recent Budget 2014 announcement involves the healthcare needs of Singaporeans. Part of the solution to combat increasing healthcare cost is the highly anticipated revamp to the basic CPF Medishield insurance. In this issue, we take a sneak peek at what is to come with the new Medishield Life.
_____________________________________________________________________
Why Improve Medishield?
One concern is that Singaporeans have is the cost of Healthcare. In a recent survey conducted by GfK, 65% of respondents said that inflation and high prices are among their top concerns., followed by recession and unemployment (43%), and cost of Healthcare (42%).
Another major concern is the expiry of Medishield when one reaches age 90. This leaves older Singaporeans vulnerable to high healthcare costs. Medishield also excludes people who are medically un-insurable. Unfortunately, these Singaporeans are the ones that need the most care.
Medishield Life - The Proposed Changes
To address the above concerns, Medishield Life will replace Medishield. Changes include:
1. Better coverage through higher payouts. This will ensure large bills become more affordable.
2. Lifetime coverage. This will give peace of mind to the elderly especially those above 90.
3. Coverage for all, even those with pre-existing illnesses. Good news for those who cannot be insured otherwise.
Medishield Life - The Trade Offs
Premiums are expected to rise. The increase might be significant as the enhancements will result in both a wider scope of coverage and higher payout.
To ensure the affordability of Medishield Life during old age, there will be adjustments to the premium structure. This means paying more while we are still working to off-set our premiums when we are older.
The change is confirmed, but the minute details are still open to speculation. One important question is how private Shield plans would be integrated into the new Medishield Life. Would we still require private Shield plans to have enough coverage? Keep your eyes peeled. We will bring you the latest news once it is out.
