Complete Guide To Buying A Private Integrated Shield Plan
When it comes to health insurance, a private integrated shield plan (IP) is one of the most important policies that all Singaporeans and Permanent Residents (PRs) should consider getting.
Private integrated shield plans help policyholders cover any potential cost that may be incurred if they are hospitalised, either in public or private hospitals.
A private integrated shield plan comprises two components. The first is MediShield Life. All Singaporeans and PRs are automatically covered under MediShield Life, Singapore’s basic health insurance plan. Coverage is provided regardless of age or pre-existing conditions.
The main limitation of MediShield Life is that the coverage provided will be pegged to the expected treatment cost in Class B2 or C wards in public hospitals. This means that if a patient chooses to be admitted to a higher-class ward in a public or private hospital, the payout provided that is provided by MediShield Life is likely to be only a fraction of the total bill.
To ensure coverage is provided for higher-class public hospital wards or private hospitals, Singapore residents can choose to upgrade their existing MediShield Life to an integrated shield plan.
Read Also: Your Complete Guide To Healthcare Financing In Singapore
Find Out More:
Different Types Of Integrated Shield Plans
Coverage for integrated shield plans can be grouped into three different types.
Standard Integrated Shield Plan (Standard IP): Standard IP provides coverage for policyholders for Class B1 wards at public hospitals. The benefits provided by Standard IP are identical across all IP insurers.
To help potential policyholders decide which Class B1 plans to choose from, the Ministry of Health (MOH) has helped compile information showing the different premiums for Standard IP.
Source: MOH, As at 1 April 2024
Comparing lifetime premiums offers a more comprehensive view, as it considers the total amount a policyholder will pay over the life of the coverage, rather than just the premiums at different age bands. For instance, an insurer might offer the lowest premium for those aged 21 and below, but this policy could ultimately be more costly in the long term if the premiums for older age groups are higher compared to other insurers.
Class A Plans: Class A plans provide coverage for policyholders for Class A wards at public hospitals. Unlike Standard IP, the benefits provided by Class A plans may differ in coverage across each insurer.
Here’s a look at the difference in premiums for Class A plans.
Source: MOH, As at 1 April 2024
Private Hospital Plans: Private hospital plans provide coverage for policyholders at private hospitals. Similar to Class A plans, benefits provided may differ from insurers.
Here’s a look at the difference in premiums for private hospital plans.
All premiums shown above are calculated by taking the sum of premiums, from Age Next Birthday (ANB) 1 to 100, based on insurers’ premium tables as of 1 Apr 2024. It does not include the premiums of the MediShield Life component of IPs or rider premiums. Figures are rounded up to the nearest hundred.
Coverage Provided By Integrated Shield Plan
As mentioned above, benefits provided by Standard IP plans are identical across all insurers while benefits provided for private hospitals and Class A plans may differ among insurers.
In general, there are different types of coverage.
Inpatient & Day Surgery: This includes daily ward, treatment cost and surgery
Outpatient Treatment: This includes treatment for kidney dialysis, cancer treatment and chemotherapy
Pre & Post Hospital Treatment: This covers the cost of any related treatments that are incurred before or after the hospitalisation stay.
Who Are The Different Insurers?
As the name suggests, private insurers offer private integrated shield plans. Today, there are a total of 7 insurers in Singapore that offer these IP plans. They are:
AIA: AIA HealthShield Gold Max
Great Eastern: SupremeHealth
HSBC Life: HSBC Life Shield
Income: IncomeShield
Prudential: PruShield
Raffles Health Insurance: Raffles Shield
Singlife: Singlife Shield
In addition to selecting a plan with the most extensive coverage, policyholders should carefully consider the lifetime premiums they will be paying. It’s important to think not only about the cost today but also about the plan’s affordability over the long term. Keep in mind that insurers may review and adjust premiums over time.
Paying For Your Integrated Shield Plans Premiums
Like MediShield Life, annual premiums for your private integrated shield plans can be paid using your Medisave.
However, unlike MediShield Life premiums, which can be paid fully using your Medisave, there is a cap to how much Singapore residents can use from their Medisave account to pay for their private integrated shield plan premiums.
The amount they can use from their MediSave to pay for their private integrated shield plan, also known as the Additional Withdrawal Limits, is as follows.
Age | Additional Withdrawal Limit |
40 and below | $300 |
41 to 70 | $600 |
71 and above | $900 |
For example, if the premium for the private integrated shield plan is $375 and the individual is 35 years old, he can use $300 from his Medisave to pay for his premiums and will need a cash outlay of just $75.
As people age, annual premiums for private integrated shield plans will naturally increase. This increase reflects the fact that older people are more likely to require hospitalisation and treatment than younger folks.
Buying A Rider
Similar to MediShield Life, coverage provided at higher-class wards does not mean hospitalisation bills are fully paid for. All integrated shield plans include deductibles and co-insurance.
In the past, if you wanted complete coverage so that you did not have to pay for any deductibles and co-insurance, you had the option of purchasing a separate full rider that could fully cover all hospitalisation bills incurred.
However, since April 1, 2019, all new integrated shield plan riders must incorporate a co-payment of at least 5%, subject to an annual cap of $3,000 (though insurers can set higher thresholds). For example, if you incur a hospitalisation bill of $15,000, a 5% co-payment will mean having to fork out $750, with the remaining $14,250 covered by the private integrated shield plan.
To find out more about the changes to shield plan riders, you can read this article about 5 facts about the integrated shield plan changes that Singaporeans need to know about
This regulation only applies to riders of new integrated shield plans. Existing integrated shield plans with full riders are not affected. However, existing policyholders are still affected by insurers’ decisions to continue renewing existing full riders. Indeed, in February 2021, NTUC Income announced the decision to renew full riders (regardless of whether they were purchased before or after the April 2018 regulation) with a co-payment component from 1 April 2021 onwards.
All riders have to be paid using cash only.
For existing policyholders with full riders, we go through the implications of this change in our article: Buying A Private Integrated Shield Plan: Should You Opt In For Co-Payment Rider?
The Claims Process Is Important
For new buyers of integrated shield plans, what is more pertinent is perhaps how and what you can claim.
The good news is that according to MOH, most claims are processed by the insurer within 2 days. These durations are for Integrated Shield Plan claims and do not include rider claims.
It is reassuring to know that all insurers are speedy in processing the claims. However, these statistics also don’t tell us the difficulty of making a claim. Much of the claim process may have been expedited because IP policyholders are seeking treatment with panel specialists and have already prepared a Letter of Guarantee.
Claims-Based Pricing
In recent years, some insurers have also been moving towards claims-based pricing. Policyholders who do not make a claim will enjoy a discount on their rider premiums, which will range between 20% and 25%, depending on the insurer. Those who do make a claim of at least $1,000 or $2,000 are likely to face a hike in rider premiums in the subsequent year.
While this benefits healthy policyholders, it could become detrimental when we eventually fall ill. Once that happens, our rider premiums will escalate and we may end up in a no-win situation where we have to handle both escalating healthcare and premium costs.
Read Also: MediShield Life Review: 5 Things To Know About The Key Changes Being Recommended
While Integrated Shield Plans (IPs) provide additional coverage beyond MediShield Life, it’s essential for IP buyers to first understand the base coverage that MediShield Life offers. By being well-informed about what MediShield Life covers, you can better evaluate whether your IP provides sufficient protection to meet your healthcare needs.
Read Also: Beginner’s Guide To Understanding How MediShield Life Works
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