Adrian Khiat wrote in to the ST Forum on the moral hazards of having an insurance plan that covers 100% of the hospitalization bill.

I agree with most of his view points.

Anyone who has been to a buffet will know what I mean. The eating behavior is very different when you are paying for a buffet compared to paying for an ala carte meal.

If you do not have to pay a single cent for your entire hospitalization, you will have a greater tendency to go for the best option where wards and treatment are concerned.

Single bed or 6-bedded? Of course you will go for the single bed.

Higher claims will ultimately lead to higher premiums.

The higher premiums that you pay over a lifetime might actually be more than the co-payment that you would have to pay from time to time if you had opted for an insurance plan that requires a little bit of co-payment on your part.

So, before you take up a plan that covers 100% of your hospitalization bills, take a look at the premiums carefully and ask yourself whether you will be able to afford the premiums when you are 60+ or 70+ years old.

Are you unsure about what Medisave, Medishield, Medifund or Eldershield is, and what coverage it provides for you? Are you unclear of what to look out for when buying a health insurance policy?

If any of the above applies to you, this seminar might be worth attending.

In conjunction with the Ministry of Health (MOH) and Life Insurance Association (LIA), the Consumers Association of Singapore (CASE) is organising this free seminar to educate you on the various government and private healthcare financing schemes available to you.

Other topics such as the benefits of health insurance and important considerations when purchasing a health insurance policy will also be shared. Finally, CASE will speak on the Consumer Protection (Fair Trading) Act, and how the legislation is applicable to disputes concerning health insurance.

Topics include:

1. Healthcare financing: All about Medisave, Medishield, Medifund, Eldershield, private shield plans and subsidies (Ministry of Health)

2. Making sense of health insurance: Facts you should be aware of before buying a policy (Life Insurance Association)

3. Tips on buying health insurance and the Consumer Protection (Fair Trading) Act (Consumers Association of Singapore)

Details of Seminar:

When: 15 May 2010 (Saturday)
Time: 10am – 1pm (registration starts at 9.30am)
Where: NTUC Centre, training room 701, 1 Marina Boulevard Level 7, Singapore 018989

*Tea break is included for participants, free CASE door gift to be given away! Limited seats left. Email marketing@case.org.sg or call 64611888 to register.

MOH posted a reply to a letter written in the Straits Times forum about a  couple’s newborn being rejected from Medishield.

According to MOH, it was not a case of rejection but more of a deferment as the baby was still undergoing medical treatment at the point of application. The couple can apply again for the Medishield after they have obtained the relevant medical reports although the existing condition could probably be excluded.

While it is good to get a clarification from MOH, one wonders how many other people who had been deferred might have fallen under the radar if they had not gone on to seek a proper clarification like what the couple had done.

There was an article on the Straits Times forum yesterday written by a parent whose child was denied the Medishield plan by CPF.

It was unfortunate that CPF did not want to cover the child, and it seemed to go against the  Health Minister Khaw Boon Wan’s announcement that every newborn baby will have basic medical insurance coverage at birth.

There was an earlier case of a newborn with congenital defects being excluded, but from the reply it seemed to imply that at least they would still be covered by Medishield with an exclusion for the congenital defect.

This does not seem to be the case here.  Hopefully, MOH can shed some light on this issue.

When it comes to medical insurance for adults, the situation is much clearer. However, there are some things you should take note of. These points relate to the Medishield and private integrated shield plans.

1. When you apply for a medical plan, pre-existing conditions are automatically excluded (whether you are aware of it or not). The acid test comes at the point of claim since the doctor will be able to report on when the condition first developed. For example, if a tumor started growing one year ago (unknown to you) but you only applied for the medical insurance six months ago, then it won’t be covered.
2. Therefore, you should not wait until you develop a medical condition before you start looking for medical insurance. Switching plans should also be avoided unless really necessary.
3. If you are aware of a medical condition but fail to disclose it in your application, it is a form of non-disclosure. Once discovered, the insurer can choose to amend your policy to exclude that condition or even worse void your policy altogether.
4. There are certain medical conditions whereby an insurer will reject your application outright. This need not be serious conditions but can be (what might appear) a minor thing like being diagnosed with high cholesterol before the age of 35. The conditions that trigger this automatic decline will differ from insurer to insurer.
5. For people that fall into the above category (4), they can apply with a certain insurer under the moratorium option with no medical underwriting. This offers guaranteed acceptance into the plan no matter what their underlying condition is. Of course, the underlying conditions will still be excluded. However, it is important that such people are aware of this option and do not go and apply with other insurers as one of the conditions to take up the moratorium option is that they have NOT been rejected by any insurer before.

Free Child Upgrade Campaign: 11 May 2009 – 30 September 2009

From 11 May 2009 (Monday) last week, Incomeshield launched a new campaign: Free Upgrade for Children.

NTUC income will offer all children in Singapore a one-year free upgrade from MediShield to their Standard Incomeshield Plan B. This offer is available to all Singapore citizens and permanent residents aged 16 and below, who do not hold an integrated Shield plan by NTUC Income or other insurers.

This decision comes amidst growing a concern to help needy families affected by the economic downturn. Further, in periods like the present, where there is an ongoing flu pandemic, a health insurance policy like Incomeshield provides cover against a gamut of ailments and defrays the hospitalization expenses incurred on medical treatments.

Parents who wish to upgrade their children’s MediShield plan may do so between 11 May and 30 September.  Those whose children are on MediShield will continue paying the $33 yearly premium, and NTUC Income will absorb the $19 it costs to upgrade to Standard Incomeshield Plan B, which costs $52 a year. Those who want to upgrade their children to a higher plan than Plan B, we will give a $19 discount on the first year premium as well.

Another good news is that for NTUC members, instead of offering Standard Incomeshield Plan B, NTUC will offer their children an Enhanced Incomeshield Basic plan instead. The parents will only need to pay $33 and get an Enhanced Incomeshield Basic Plan worth $70 a year, this works out to a discount of $37. This $37 discount may be applied to other higher Enhanced Incomeshield Plans as well, with the offer similarly limited to a one-year term.

All children, on age next birthday must be aged 16 and below, policy submitted on 11 May onwards till 30 Sep 09 will be automatically given $19 discount. 

Some main points to highlight :

1) New Business only

Please note that this campaign is for new business only, any change of plans or adding riders will not be entitled to the discount.

2) Foreigners

The life to be assured must be Singaporean Citizens or Permanent Residents. Foreigners are not entitled to the discount.

Further Comments

This promotion by NTUC is essentially a discount of $19 for the first year (or $37 if you are a NTUC member) if your child takes up an integrated shield plan with NTUC. 

An integrated shield plan is essential for everyone and should be taken up as early as possible to ensure proper hospitalisation and surgery (H&S) insurance coverage for life.

Certain medical conditions developed later on in life might cause a person to become uninsurable – meaning insurance companies will reject an application for H&S cover.

While the discount by NTUC is a good incentive for people to buy a proper H&S plan for their children, do consider your circumstance carefully before taking up the Plan B that is being offered.

You should really take up a plan that is suitable for the kind of ward you intend to stay in if you are ever hospitalised. Should you take up a higher plan, you will still enjoy the $19 discount.