With the announcement of Medishield Life on 5 June 2014, will I drop my Medisave-approved Integrated Policy (IP) with Aviva?
I took up Aviva IP Myshield Plan 2 that covers my in-patient stay in any Government/Restructured Ward which allows me to stay in Class A1 ward in Government/Restructured Ward or other class wards below A1.
Let’s compare the benefits of Medishield Life and Aviva’s IP Plan 2 (in broad terms).
|Benefits||Medishield Life||IP Plan 2 of Aviva|
|Inpatient benefits daily ward & treatment charges
– Normal stay
|Max daily claim limit $700||As charged, meaning Aviva picks up these charges without daily claim limit.|
|– ICU||Max daily claim limit $1,200||As charged|
|Surgical procedures||Max claim limit $200 to $2,000||As charged|
|Claim limit for policy year||$100,000||$400,000|
|Claim limit for Lifetime||No limit||No limit|
|Maximum coverage age||Lifetime||Lifetime (Premium on renewal from age 76 onwards till 100)|
|Annual deductible||$2,000 Class B2||$3,500 for Class A1|
|Co-insurance||Co-insurance rates range from 3% to 10%||10%|
Under the Medishield Life, those with pre-existing conditions will have to pay 30% higher premiums to reflect higher risks, over a period of 10 years. Since I have been covered under IP, pre-existing medical conditions had been factored in my policy already.
Premium increase for remaining policyholders as a result of universal coverage should be no more than 3 per cent from current premiums according to Medishield Life Review Committee. Let’s see whether this is true in the end.
The following are reasons for keeping to my Aviva IP Myshield Plan 2 even with latest changes to Medishield:
1. Existing benefits offered by IP are superior than Medishield Life on all fronts except for annual deductible and co-insurance rates. See above table.
2. Claim limit for lifetime is already unlimited under IP.
3. Maximum coverage age is already lifetime under IP.
4. I can opt for ward A1 hospitalisation in Government/Restructured Ward under this IP on a “as charged” basis. (“As charged”, meaning Aviva picks up these charges without daily claim limit.)
5. Claim limit for a policy year is $400,000 in the case of IP against a lower limit of $100,000 for Medishield Life.
6. As one gets older, it is not advisable to switch insurance policy because we may more likely have pre-existing medical conditions that can cause insurance premium to go higher on the switch.
The government will provide subsidies for bottom two-thirds of households to help them cope with increase in premium as a result of Medishield Life. Details are still sketchy based on the reports of Medishield Life in major newspapers. For one, mean-testing of those households that qualify was not completely spelt out. Will the annual value of one’s residence be used again beside per capita family income to determine who qualifies for subsidies? I would think that this would be the case like the CHAS scheme, where annual value of residence is also used.
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