Can deductible be paid by MediSave
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Here's what deductible and co-insurance mean, and how you can reduce these out-of-pocket expenses. Show Industry-specific terms and jargon in your health policy contract can make it hard to understand exactly what your coverage entails. And because many people leave the technicalities to their trusted insurance agents, it can be baffling or disappointing when medical
claims get rejected or payouts are lower than expected. If you don’t want to be caught off guard by huge bills for your medical treatments, it’s important to understand how your MediShield Life Plan or Integrated Shield Plan works. For starters, familiarise yourself with two common health insurance terms: “deductible” and “co-insurance”. Simply put, these are your out-of-pocket expenses for covered medical care that isn’t paid by your insurer.
Understanding these features and knowing how they work together helps you make the right medical and financial decisions, as they directly impact the amount you spend on top of your insurance coverage.
A deductible is the initial amount you have to pay for eligible medical claim(s) made in a policy year, before you can start receiving any payouts from your insurance policy. For example, if your Integrated Shield Plan includes an annual deductible of S$3,500, you must pay the first S$3,500 for your insured medical services before your Integrated Shield Plan starts to pay for your subsequent medical expenses. Deductibles are included in Integrated Shield Plans to screen out small claims as these plans are designed to cover large hospital and treatment bills. The amount of deductible payable differs with each insurer and depends on the plan you’ve signed up for.
Think of co-insurance as splitting the cost of your covered medical expenses with your insurer. The amount you have to pay under your Integrated Shield Plan is a fixed percentage and only kicks in once you have met your deductible. For instance, if your hospital bill is S$20,000 and your Integrated Shield Plan has a S$3,500 annual deductible and a 10% co-insurance feature, you’ll first have to pay the S$3,500 deductible, before paying 10% of the remaining eligible cost (S$16,500) which works out to S$1,650. Your insurer will pay the remainder of the total eligible medical cost. To help lighten your cash outflow, you can also tap onto your MediSave to pay for the deductible and co-insurance, up to specified limits, if they are not covered by your health insurance. Why are these out-of-pocket costs necessary? In Singapore, the MediShield Life Plan and Integrated Shield Plan include deductibles and co-insurance as these features encourage everyone to play a more active role in managing their medical care costs and preventing over-consumption of medical services. These features help to ensure healthcare costs and health insurance premiums remain affordable and sustainable for all Singaporeans in the long term. How can you reduce out-of-pocket expenses? There are a few ways to reduce your out-of-pocket costs. For instance, opting for panel specialists within your health plan’s provider network may give you access to preferred consultation rates. You should also request for pre-approval of your claims before going for any planned medical treatments as this gives you certainty of your claim outcome.
There is also the option of adding a rider plan to your Integrated Shield Plan to reduce your out-of-pocket expenses. One of the benefits of a rider plan is that it provides coverage for deductible and co-insurance, subject to limits. Do note however, that as of March 2018, the Ministry of Health requires all new rider plans to include a co-payment of 5% or more so that everyone takes on a shared responsibility for their healthcare needs. Opting for panel specialists and requesting for pre-approval or seeking treatment at a restructured hospital can allow you to enjoy lower co-payment with your rider plan. There you have it: your guide to understanding deductible and co-insurance in your health plans. Knowing that you won’t have to deal with unwanted financial surprises can be reassuring in times when you just want to focus on your health. Need to see a medical specialist?There are more than 600 specialists across various disciplines on Singlife’s panel. Start your search here or download Singlife ClaimConnect app from the Apple App Store or Google Play store. You can also ask your specialist to help you with pre-approval of your claim before going for a planned hospitalisation and medical treatment. Alternatively, speak to your financial adviser representative or Enjoy reading our articles?Subscribe to Money Banter to receive useful tips and guides on insurance and offers on products and services. Thank you for your submission. By clicking “Submit”, you consent to Singapore Life Ltd. (“Singlife”) and Singlife related companies contacting you to provide you with information concerning Singlife and Singlife related companies’ products and services and special offers which may be of interest to you. Important InformationMoney Banter (the "Portal") is for general information only and does not take into account the specific investment objectives, financial situation, health condition and needs of any particular person. The contents of this Portal are intended merely for educational purposes and should not be construed as the giving of advice or
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Protected up to specified limits by SDIC. This advertisement has not been reviewed by the Monetary Authority of Singapore. Can I use MediSave to pay for insurance?MediSave can be used to pay for an individual's own health insurance premiums, or those of their approved dependents. MediShield Life and ElderShield or CareShield Life premiums can be covered fully by MediSave.
What is claimable under MediSave?You can use MediSave to cover outpatient services, including chronic disease treatments and preventative care at GPs, polyclinics and Specialist Outpatient Clinics (SOCs). You can use up to $500 for non-complex conditions, or $700 for complex chronic conditions per annum per patient, under the MediSave500/700 scheme.
Does MediShield life have deductible?A percentage of the claim amount that you will have to pay, on top of the deductible. The higher the bill, the lower the co-insurance. It ranges from 10% to 20% as the bill size increases. MediShield pays what is left of the claimable amount after deductible and co-insurance.
How much can be deducted from MediSave?MediSave can be used for pre-delivery and delivery expenses. You can use up to $550 per day for the first two days of hospitalisation, $400 per day thereafter, for inpatient hospital charges, which includes daily ward charges, daily treatment fees, investigations, and medicines.
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