WHO WE ARE A collaboration between MoneySENSE, the national financial education programme, and Singapore Polytechnic. We conduct free and unbiased financial talks/workshops at workplace and public venues 2 1
DISCLAIMER This workshop aims to help you evaluate information. It will not involve any advice in product selection. Any mention of industry, company or reference to product is solely for the purpose of illustration and application of concepts. You should consult a licensed financial advisor before making a decision to purchase any financial products 3 Things to know Understand CPF insurance schemes Understand your Medisave account Understand MediShield Life 2
CPF INSURANCE SCHEMES Medisave Account (MA) MediShield Life Ordinary Account (OA) ElderShield Dependants' Protection Scheme (DPS) Universal coverage, multiple layers of protection S + 3Ms 3
What are Government Subsidies All Singaporeans are eligible for high level of subsidies in public hospitals Up to 80% Class C Up to 65% Class B2 Up to 70% Specialist Outpatient Subsidies are also available at polyclinics, CHAS GP clinics and nursing homes What is Medisave? A national savings scheme to help Singaporeans set aside savings for their healthcare expenses, especially after retirement. 8 10.5% Monthly income Medisave can be used to pay for our own and our immediate family members (IFM) healthcare expenses IFMs refer to spouse, children, parents and grandparents. Grandparents must be Singaporeans or Singapore Permanent Residents. Refer to www.cpf.gov.sg for the contribution rates 4
9 Uses of Your Medisave Please refer to the MOH website for the latest list of Medisave withdrawal limits How do I use my Medisave? 1 2 3 Let the hospital or clinic know if you would like to use Medisave to pay for your treatment. Sign a form to authorise the hospital or clinic to access information and deduct from your Medisave account. After your treatment is over, the hospital or clinic will work out the bill and submit a claim to the CPF Board. The CPF Board will deduct the allowed amount and send you a statement of account. 5
What is? Basic Healthcare Insurance to help pay for large hospital bills and outpatient treatments Targeted for subsidised treatments in public hospitals e.g. Class B2/C wards What is Medifund? Medifund will help Singapore Citizens who are subsidised patients If they cannot afford their bills after subsidies, Medisave and MediShield Life 6
Benefits of MedShield Life Very old Currently sick Previously excluded MediShield Life Pays More Patients Pay Less 13 MediShield Life Pays MORE Co-insurance DECREASE Deductible NO CHANGE Co-Insurance Patient Pays LESS Co- Insurance Claim Limits INCREASE Bill above Claim Limits Bill above Claim Limits MediShield Life Hospital bill after MediShield subsidies Payout payout Deductible 14 7
Example 1: Stroke Understanding Your Healthcare Coverage Hospitalised for 10 days in B2 ward, 4 days in ICU Mr Yee 48 years old Bill after subsidy Insurance Pays Patient Pays (Medisave/ Cash) MediShield (Before) $10,100 MediShield Life $5,290 $7,547 $4,810 $2,553 MediShield Life Pays MORE, Patient Pays LESS Example 2: Cancer Underwent 4 Chemotherapy Cycles Mdm Lim 63 years old Bill after subsidy Insurance Pays Patient Pays (Medisave/ Cash) MediShield (Before) $6,800 MediShield Life $4,960 $6,120 $1,840 $680 MediShield Life Pays MORE, Patient Pays LESS 8
What about MediShield Life Premiums? MediShield Life premiums will be higher than MediShield premiums Will premiums be affordable? Government will provide support for MediShield Life premiums, to keep them affordable 1. Premium Subsidies for Lower to Middle Income 2. Transitional Subsidies 3. Pioneer Generation Premium Subsidies 4. Additional Premium Support 1. Premium Subsidies for the Lower to Middle-Income 15 50% AND AND You live in HDB flat OR in private housing with Annual Value $21,000 Your household monthly income per person is $2,600 You do not own any property, or have only one property to your name 9
2. Transitional Subsidies For all Singapore Citizens Help with transition to MediShield Life Government will offset a percentage of the net premium increase over 4 years (In first year, you pay only 10% of the increase) 3. Pioneer Generation Subsidies For all Pioneers Special MediShield Life premium subsidies of between 40% and 60%, depending on age More generous than premium subsidies for non-pioneers 4. Additional Premium Support for needy For those who cannot afford their premiums even after subsidies due to insufficient Medisave and limited family support No one will lose MediShield Life coverage because they cannot afford their premiums 10
1. Do I have an Integrated Shield Plan? Do you have one of the following plans? Can you use Medisave to pay for your private insurance premiums? If you answered Yes to any of the above questions, you have an Integrated Shield Plan 21 What is an Integrated Shield Plan? An Integrated Shield Plan has 2 parts Provides higher coverage (e.g. to cover the cost of Class A/ B1 wards, or in private hospital) Managed by private insurer Enough to cover large hospital bills in Class B2/C wards in public hospitals Managed by CPF Board All Integrated Shield Plan policyholders are covered by MediShield Life. MediShield Life is part of your Integrated Shield Plan. There is NO duplicate coverage. 22 11
Add-on to Private Integrated Shield Plans Pays for deductibles and co-insurance Premiums tied to age and type of plan Riders Premiums must be paid using cash E.g. IncomeShield Plus Rider AIA Max Essential Should you keep your Integrated Shield Plan? Healthcare choice & expectation Two questions: 1. Ward class and hospital? Choice of doctor? 2. Are you willing to pay for your IP premiums in the long term, since premiums rise significantly with age? 24 12
How much do I pay for premiums? MediShield Life policyholders will be able to fully pay for their MediShield Life premiums using Medisave Premium for MediShield Life* FULLY payable by Medisave, no limit IP policyholders will have Additional Withdrawal Limits (AWLs) for Medisave use to pay for IP premiums Premium for Additional Private Insurance + Premium for MediShield Life* Rest is payable by cash Payable by Medisave, UP TO AWLs FULLY payable by Medisave, no limit *Includes applicable subsidies and Additional Premiums, if any 25 How Additional Withdrawal Limit (AWL) is applied to IP premiums? Age Next Birthday AWLs 1 40 $300 41 70 $600 >=71 $900 13
How much do I pay for premiums? Mr Tan 65 years old Purchased a Private Hospital plan AWL applicable: $600 Premium for Additional Private Insurance $946 Premium for MediShield Life (after subsidies) $466 $600 fully payable by Medisave + $346 Cash payable $466 fully payable by Medisave, no limit What is the Standard IP? Affordable plan intended to provide adequate coverage at the Class B1 level Standardised and identical benefits across insurers Benefits are regulated by the Ministry of Health and will be reviewed from time to time to ensure that they remain relevant to policyholders Standard IP premiums will remain unchanged for 2 years starting from 1 May 2016 28 14
Cost Comparison MSL premiums (before subsidies) Range of IP premiums (includes MSHL component) Age Next ($) ($) Birthday Class B1 or Private similar Non-ascharged IPs 1 Hospital IPs Standard IP Class A IPs 1 to 20 130 158-192 157-195 185-223 242-324 21 to 30 195 232-265 228-261 253-294 320-407 31 to 40 310 362-412 358-398 394-472 482-588 41 to 50 435 512-568 511-568 601-765 762-1015 51 to 60 630 710-818 732-825 870-1110 1113-1490 61 to 65 755 931-1023 961-1036 1168-1505 1637-1967 66 to 70 815 1163-1265 1144-1236 1467-2102 2109-2553 71 to 73 885 1414-1544 1410-1541 1811-2664 2780-3325 74 to 75 975 1578-1743 1573-1774 2080-3021 3205-3801 76 to 78 1,130 1855-2299 1773-2302 2485-3868 3765-4888 79 to 80 1,175 1911-2321 1861-2406 2722-4056 4134-5560 81 to 83 1,250 1748-2286 1968-2481 2667-4865 3972-6928 84 to 85 1,430 2134-2480 2328-2714 3136-5106 4566-7351 86 to 90 1,500 2282-3311 2619-3300 3604-5979 5152-8058 >90 1,530 2624-4006 2790-5056 3822-6515 5842-8987 Benefits Comparison Source: Compilation from MOH website and Private Insurer s documentation as of March 2016 Benefit Parameter MediShield Life Standard IP (B1 Ward) As-charged IPs Daily Limits $700 / $1,200 (Normal / ICU Ward) $1,700 / $2,900 (Normal / ICU Ward) As charged Surgical Limits $200 - $2,000 $590 - $16,720 As charged Community Hospital $350 per day $650 per day As charged Limits Outpatient Cancer Treatment Claim Limits Deductible Co-Insurance Inpatient : 3 10% Outpatient : 10% Source : Chemo : $3,000 http://www.moh.gov.sg per month Chemo : $5,200 per month Radio : $140 /content/moh_web/med - $500 per Radio : $550 - $1,100 per session ishieldlife/benefits.html (to 81 and $1,500 - $2,500 (to age 81) session $1,500-$3,000 above) Riders may be available 10% Riders may be available As charged $1,500 - $3,500 (to age 81) Can be fully covered by Riders 10% Can be fully covered by Riders Annual Limit $100,000 $150,000 $650,000 Pre- & Post Treatment Not Covered Not Covered Covered to Specified Time 15
CHOOSE A PLAN THAT MEETS YOUR NEEDS Example of MediShield Life vs IP payout Patient who had a heart bypass after a heart attack (hospitalised for 8 days in B2 ward) 21 June 2014, The Straits Times Singapore Press Holdings Limited. Reproduced with permission. 16
What is ElderShield? Severe Disability Insurance for Long Term Care Needs Helps with severe disability for those unable to perform at least 3 Activities of Daily Living (ADLs) Up to $400 cash/month, for up to 72 months Premiums are fixed based on the joining age and do not increase with age o Last premium payment is at age 65 o Premiums can be paid using Medisave or cash What are Activities of Daily Living (ADLs)? Washing Feeding Dressing Toileting Mobility Transferring How to apply? Auto-covered at age 40 by one of three insurers (NTUC Income, Great Eastern Life, or Aviva) Check that you and your loved ones have ElderShield: o Log on to www.cpf.gov.sg and login with your SingPass o Contact MOH QSM at moh_qsm@moh.gov.sg You may wish to consider purchasing ElderShield Supplements for additional coverage. o Premiums can be paid using Medisave (up to a limit of $600 per year per person insured) or by cash 17
DEPENDANTS PROTECTION SCHEME (DPS) How long am I protected? What does it cover? Another health insurance? How do I pay? How much is the payout? What if I don t have enough funds? 1. Medishield Life is a basic health insurance. Consider Intergrated Shield Plan only if you desire higher coverage. 2. Understand the features of the product you are buying and how they can meet your needs. Always ask your financial adviser to explain when in doubt. 3. Do not make impulsive decisions. You may not be covered under the same terms once you loses the coverage, especially if you suffer a medical condition 18
Useful contact information Agency Hotline Website Email CPF Board 1800-227- 1188 www.cpf.gov.sg member@cpf.gov.sg Ministry of Health 6325 9220 www.moh.gov.sg moh_info@moh.gov.sg Pioneer Generation 1800-2222- 888 www.pioneers.sg contactus@pioneers.go v.sg MediShield Life 1800-222- 3399 www.medishieldlife. sg 19