Following the announcement of the Medishield Life initiative, there has been much speculation and ‘hoo-haa’ going on throughout the entire island. Many common questions are what is this enhancement all about, and how is it going to affect their existing life coverage and their premiums. Even though newspapers, road shows, television programs and online forums take turns to share their two cents worth with the public, many of us are still having question marks in our heads. Well, luckily the Ministry of Health has provided helpful information online to highlight the few key benefits to note of this enhancement. Allow me to run through the few key pointers for you here:

First and foremost, MOH states that Medishield Life is here ”to provide better coverage for large subsidised bills and provide assurance that all Singaporeans will be covered for life for subsidised bills, regardless of how their life and health circumstances change over time”. This enhancement is here to take care of hospital bills and hence it will not affect your existing Life Insurance/ Endowment/ Personal Accident Plans etc. For those who already have Privated Integrated Medishields do not fret; respective insurance companies are still in discussion as to whether they should make adjustments to match the enhancement. For now, everything is still unofficial.

1. Covers everyone
Medishield Life covers all Singapore Citizens and Permanent Residents. This is the fact even if we have pre-existing conditions including cancer, stroke, heart disease and have been rejected by other insurance companies.

2. Protects you for life
Medishield Life is now providing coverage for life, as compared to the current one which covers only till age 90.

3. Has better benefits
To avoid confusion, I am not going to run through the enhancement in detail. In general, Medishield Life has undergone some tweaks to ensure that you pay less hospital bills.

4. Premiums will increase
Obviously when benefits increase, so will premiums. However, Medishield is aiming for the working adults to pay more so that the retirees can pay less.

5. Premiums fully payable by Medisave
This enhancement will not incur any cash at all. Premiums will be fully payable via Medisave.

6. Government will provide support
An island-wide adjustment will definitely work out better if the citizens could transit across comfortably. Hence the government is also providing some subsidies to facilitate the smoothness of the transition.

7. No one will lose coverage due to financial need
Additional financial assistance for those who cannot afford premiums even after subsidies, for e.g. Medifund or a similar scheme. The government promises that everyone will be covered under Medishield Life.

8. No need to apply
Last but not least, and very importantly, MediShield Life will only start at end 2015. So there is no need to be anxious and uptight about the changes now. Besides you do not have to do anything, it will be automatic inclusion for Singapore Citizens and Permanent Residents.

So there you go, here are some of the key pointers to watch out for with regards to Medishield Life. For more detailed explanation, please seek your own financial adviser for further clarification or click the following link. Goodluck!

http://www.moh.gov.sg/content/moh_web/medishield-life/8-things-to-know.html

*Disclaimer: What I have written above are based on my best understanding of Medishield Life. For more details, please visit the Ministry of Health website.