Monday, March 4, 2013

Medishield & Incomeshield enhanced premiums

The government has recently enhanced some of the coverage of the basic Medishield and in view of these, increases the premium rates of Medishield. I understand the rationale behind this enhancement. The rationale is to better protect those Singaporeans who have only a basic plan under Medishield and more importantly provide the elderly among the aforementioned group here with better coverage against the current backdrop as currently, reigning old-age diseases can potentially last longer than before.

I currently have a private Medishield plan for which I am paying more in premiums than for a basic Medishield plan as my plan gives more coverage. With the enhancements in Medishield, I find myself receiving a letter from CPF board which informs me that I, as a holder of a private Medishield plan also need to pay more (some additional amount will be deducted from my CPF for the enhancements made in Medishield). After doing some mental sums and calling my insurance agent, I think that it is not really too fair as the enhancements are made to the basic Medishield plan with only very minor enhancements to the private plans but it translates to policyholders of private Medishield plans having to pay more! I was both surprised that for both the main policy and the riders, I need to pay more!

I think the government should fund the enhancements to Medishield from its own pockets and not from the private Medishield policy holders. It is only fair this way. Please leave me a comment here if you are thinking about this matter too.