Medishield vs Medisave: What's the Best for Your Medical Needs?

The Singaporean government is devoted to maintaining access to cheap healthcare and assisting those in financial need with their medical expenditures. Singaporeans' access to healthcare is maintained at an inexpensive cost because of significant government subsidies and the Medisave and MediShield programs. In this article, we have gathered a concise guide that explains the distinctions between Medisave and Medishield Life.

What Is MediSave?

All Singaporeans have access to Medisave, a personal savings account designed to assist with large medical bills if they become necessary. One of the three accounts under our Central Provident Fund, the Medisave account is funded by a withdrawal from our monthly payout.

Additionally, Medisave has been made available for additional outpatient applications, such as ongoing cancer treatment, long-term care for chronic conditions, and health screenings and immunizations for new babies. When one is older, they are more likely to experience more health issues and have larger medical costs, especially as they approach the end of their lives. Because of this, withdrawal restrictions are listed on the government notice on Medisave to ensure that you have enough money to cover your long-term healthcare demands.

What Is MediShield?

The low-cost medical insurance program MediShield Life, meanwhile, was created to assist Singaporeans in covering the higher expense of hospitalization associated with B2/C class wards. The end of 2015 saw the replacement of MediShield with MediShield Life, which offers Singaporeans lifetime insurance against expensive medical expenses.

Although Medisave and Medishield Life are integrated shield plans that may be utilized in conjunction to cover hospital expenses, Medishield Life is intended to aid with greater B2/C hospitalization expenditures while Medisave is for lesser ones. Whether you choose to remain in private hospitals or other types of senior group homes in Singapore, you may still benefit from Medishield Life. Visit this page for additional details on the MOH guidelines for Medishield basic health insurance plan to learn more about MediShield Life, rates, and financial grants.

MediShield vs MediSave and Its 10 Main Differences

1. Purpose

MediShield Life and MediSave, barring their names' similarity, are two entirely distinct services. A national medical insurance program called MediShield Life was created to offer Singaporeans and Permanent Residents access to affordable, basic healthcare. Its objective is to cover significant medical expenses, such as high-priced outpatient procedures like chemotherapy and dialysis. MediShield Life pays premiums like other insurance plans do to pay out claims from beneficiaries.

While Medisave is a nationwide medical savings program that enables people to save money aside from their salary for unprecedented personal or close relatives' hospital stays as well as other outpatient costs. As one gets older, the need for medical treatment and hospitalization increases, therefore saving money for future medical expenditures is crucial.

2. Benefits

The restrictions on MediSave withdrawals were carefully chosen to guarantee that Singaporeans will have enough money in their MediSave Accounts to cover their essential medical expenses as they age. Most of the costs associated with funded inpatient wards and outpatient care are often covered by withdrawal limits.

Even though expensive medical costs and large hospital bills are uncommon, they can be exceedingly significant for those who experience serious illnesses. By combining the financial resources of people our age, MediShield Life allows us to individually pay a lower premium and fail to be pressured about a hefty medical expenditure. MediShield Life is basic since it is designed to provide subsidized care in public hospitals and contributes to funding for substantial hospital bills and a few selected costly outpatient treatments.

3. Eligibility

Generally speaking, you can utilize your MediSave for yourself or members of your family. This encompasses your partner, kids, elderly parents, and grandparents. Also, your relatives must be Singaporeans or Permanent Residents; otherwise, they might be of any nationality. On the other hand, everyone who is a Singaporean citizen or permanent resident is immediately protected by MediShield Life.

4. Funding

Typically, your CPF contributions are used to finance the MediSave account, and if you work for an employer, a portion of your monthly CPF withdrawals is automatically placed into your CPF MediSave Account. Beginning at 8% of your salary per month for those employees under 35, the percentage that goes into your MediSave Account increases as you advance along the age spectrum. For workers 50 and older, this percentage is set at 10.5%. Meanwhile, you must make your  MediSave contributions if you are a self-employed individual; the amount depends on your age, trade revenue, and other considerations. In essence, considering that your Net Trade Income is approximately around $6,000 and $20,000, you must contribute 4%. Otherwise, you are not required to make top-ups to your CPF Ordinary Account or Special Account.

Generally, the MediShield Life premiums are taken care of through your MediSave Account, as was already indicated. To enhance the scope of your Medishield Life plan's coverage, you can apply for an Integrated Shield Plan. Medishield Life now offers better coverage than Medishield did in the past, you should still think about registering for an Integrated Shield Plan to provide yourself even more security.

5. Claim Limits

Since MediShield Life is a medical insurance plan, it offers certain advantages that take effect when you need to cover medical expenses. As you may anticipate, the amount of your claims that are covered is subject to a cap, and any excess must be paid by other means. There are exemptions, of course, such as ambulance bills, private nursing charges, the majority of dental operations, and more.

Additionally, you can utilize your MediSave Account to compensate for your medical expenses as long as the balance is higher than what your Medishield Life limit would have paid for, however, only to a set amount each time. You can use the Medisave and Medishield claims calculator to learn more about the limits included in your claims.

6. Whole Coverage

Essentially, your MediSave balance will be used up if you manage to utilize it to cover MediShield Life insurance premiums, contributions, coinsurance, as well as other medical costs including long-term care. Eventually, it may run out of money, and it is particularly relevant to retirees who are no longer making CPF contributions.

The annual claims cap for MediShield Life is S$100,000, and this implies that you are permitted to submit up to S$100,000 in qualifying claims each year. There is no available lifetime cap, though; your MediShield Life coverage will remain in effect indefinitely.

7. Non-coverable Items

Severe pre-existing conditions for which the patient obtained medical care during the year before the start of MediShield coverage are not treated under MediShield. Additionally, MediShield does not provide coverage for several types of medical procedures and therapies, including those for congenital defects, cosmetic surgery, delivery fees, and personality and mental health issues.

The provision of equipment, gadgets, and appliances like wheelchairs, additional services like ambulance expenses, phone calls, respite care, cosmetic procedures, and medical evaluations are also not covered by Medisave.

8. Hospital Bill Coverage

In essence, MediSave may be used to pay for outpatient services at general practitioners and specialist outpatient clinics, including the management of chronic diseases and preventative care. Depending on your institution, MediSave can be utilized to pay for rehabilitation from $1,500 to $5,000 annually. Even if palliative care services are provided at home or in a nursing home in Singapore, these are reimbursed up to $2,500 for each patient's lifetime, daily costs are still charged. If you are 30 years of age or older and are determined to be seriously incapacitated, you may additionally withdraw up to $200 monthly from your MediSave account under MediSave Care. Additionally, under the MediSave500/700 plan, each patient may spend up to $500 for non-difficult diseases or $700 for severe chronic disorders each year.

Contrarily, MediShield is a critical illness insurance program designed to assist patients in covering high medical expenses. The deductible, such as the first $1,500 of a Class B2 bill's claimable sum or the first $1,000 of a Class C bill's total, must first be paid by the patient. Based on the magnitude of the bill, MediShield will thereafter pay anywhere from 80% to 90% of the remainder claimable sum.

9. Membership

From the moment of birth, MediShield Life will automatically provide coverage to every qualified Singaporean and Permanent Resident. This is offered to foreign nationals when they are awarded permanent resident status; no application is necessary, and each individual is presented with their policy. That said, unlike joint insurance plans, MediShield Life is for one's personal use and any remaining claims limitations cannot be transferrable to others. Contrarily, you can ask to have your premium payments suspended if you live abroad and don't plan on returning to Singapore.

However, MediSave can be used to pay for your medical costs as well as those of any qualified dependents. Apart from your grandparents and relatives, who must be Singaporeans or Permanent Residents, these people might be of any nationality. Additionally, if your dependents fail to make the necessary premiums on their own, you may utilize your MediSave to compensate for this. Also, you can even make use of your MediSave to supplement the cost of outpatient care for your dependents. The cap is $500 annually for every MediSave account, along with a 15% co-payment.

10. Hospitalisation

Generally, it is required for you to complete a Medisave Authorization Form to authorize the CPF Board to withdraw from your Medisave Account to use the scheme to compensate for the medical stay expenditures. The Medisave Authorization Form must be signed by you and the patient if you intend to use your Medisave to cover the cost of the patient's hospital stay.

If you were covered by MediShield during your hospital stay, you can request reimbursement from MediShield for a portion of your hospital cost by simply notifying the hospital personnel in charge of your admission that you want to file a claim. Should there be a claim, the hospital will be paid immediately by the CPF Board following completing all the processes.

Private Medisave-approved Integrated Plans are available for customers who choose to use Class B1/A wards or private hospitals. Additionally, Medisave may be utilized to cover the premiums for these items considering they pass MOH approval and meet the minimum regulatory standards imposed by MOH.

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What Is MediSave?What Is MediShield?MediShield vs MediSave and Its 10 Main Differences

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