The main reason behind this new regulation is that the 100% rider coverage is believed to lead to ‘over consumption’ of healthcare services. When a policy holder has an integrated shield plan that covers all hospital fees, including the co-payment portion, they would be more inclined to get admitted. One reason is due to the ‘full protection’ that would leave patients with zero or almost no bill to pay as everything will be covered by the insurance.
So, what if you already have an existing integrated health insurance plan with a full rider? No worries as the new changes will completely have no effect on those with existing integrated shield plans. There is no need to take any action hence you can relax and have peace of mind.
However, the condition will be different for new policy holders as it will depend on when you purchase the integrated plan. If you apply for a health insurance between 8 March 2018 and 31 March 2019, the policy can still cover 100% of your hospital bill. However, starting in 2021, the policy will be updated, which will involve patients paying a 5% co-payment of the hospital bill. Therefore, you will have to pay part of the bill.
Take home message
Regardless of the policy changes, having an insurance that covers your hospital bill is important, given the increasing cost of hospitalization. One common wisdom is to apply for a health insurance while you are able to do so.
If you apply before 1 April 2019, you would still be protected with a policy that comes with a 100% full coverage until 2021. This is especially relevant to new residents of Singapore or for those who have recently had a new born. Take note of the important dates and changes highlighted above. Make a wise decision.
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