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MediSave vs MediShield Life: What’s the Difference?

To this day, Singapore continues to face an aging population, much like many other developed countries. Put bluntly, the nation's population is still growing, but considerably fewer people are supporting an upsurge in elderly residents.

Long-term, healthcare plans, subsidies, and incentives will be far more highly essential as Singaporeans cope with the challenges presented by an aging society. In turn, the government has so far launched a variety of basic health insurance plans to help our senior citizens as they approach their retirement years.

What Is MediShield Life?

No matter the age or health condition, MediShield Life coverage will keep you protected for the duration of your lifetime. The fundamental universal health care insurance program, widely recognized as MediShield Life, provides lifelong coverage to all Singaporeans and Permanent Residents. It fully covers subsidized care in public hospital B2 or C wards as well as a few outpatient procedures including chemotherapy and renal dialysis.

Partially reimbursable medical expenses in A, B1, and B2 wards of private and governmental hospitals are admissible under MediShield Life premiums, pursuant to certain restrictions and withdrawal limits. Conversely, you will notice that the MediShield Life payout only partially offsets your expenses and medical bills.

What Is MediSave?

The Ministry of Health launched MediSave, a nationwide medical savings program, to help people set aside some of their salary in a medical savings account. It is intended to pay for future hospital bills. It stays, whether in an approved community hospital or private hospital, admission to an elderly care facility in Singapore, day surgeries, dental work, outpatient costs, and health insurance payments for the individual or their immediate family.

Each worker in Singapore makes a monthly contribution to a personalized MediSave account ranging from 8% to 10.5% of their salary, according to their age category. Medical expenses or large hospital bills for the account holder and members of their direct family may be compensated with the savings made.

Intentionally, the MediSave withdrawal limitations have also been set such that Singapore citizens will always have enough money in their accounts to cover their basic medical expenses. All Singaporeans and permanent residents who dwell and work in the nation must also have a MediSave account. The monthly contribution to a MediSave account is anticipated by account holders. Singaporeans who live and work abroad are not compelled to make MediSave contributions, but they are free to do so freely.

MediSave vs MediShield Life: The Key Differences Explained

It is still difficult to distinguish between MediShield and MediSave, despite the comprehensive coverage frequently provided by government insurance. Nevertheless, the two work together to undertake completely distinct functions, so it might be challenging to figure out how they integrate collectively.

Medisave Is a Savings Scheme, and MediShield Is an Insurance Plan

MediShield Life accumulates premiums in a manner similar to other insurance plans in order to pay policyholders' claims. Contrarily, Medisave is an individual savings plan offered to all Singaporeans through the Central Provident Fund (CPF) to help with substantial medical expenses down the road. For the most part, the Integrated Shield Plan, MediSave, and MediShield Life can be used in conjunction to cover medical expenses.

Each Uses a Different Method of Financing

For MediSave contributions, your CPF MediSave Account will regularly receive a portion of your monthly CPF deductions for MediSave contributions if you are currently working. Additionally, as you advance through the different age bands, a larger percentage is allocated to your MediSave Account. Otherwise, you must voluntarily provide your own MediSave payments, as a self-employed individual, which are based on your age, business revenue, and other considerations.

In contrast, as was already explained, your MediSave Account is used to automatically deduct the premiums for MediShield Life. To enhance the scope of your Medishield Life plan's protection, you can qualify for an Integrated Shield Plan (IP).

Varying Claim Limitations

MediShield Life, seeing that it is a medical insurance policy, offers a number of advantages that become available when you need to cover medical expenses. The claims are only partially covered, and any further money owed will need to be reimbursed in some other way. While a MediSave account holder can also utilize their account to pay for any medical needs, they are restricted from doing so up to a fixed limit every time.

Medisave Accepts Dependents, While Medishield Is for Personal Use Only

Starting at birth, MediShield Life will provide coverage to every qualified Singaporean and Permanent Resident. That said, MediShield Life is intended for personal use, and any unused or reserved claim limits cannot be converted for the benefit of other people. In contrast to MediSave, it allows you to apply it to both your own healthcare costs and those of authorized dependents, which include spouses, kids, grandparents, parents, and siblings.

MediSave and MediShield Life — Which Is the Right Choice?

In essence, Singapore's government mandates widespread access to reputable, affordable care for all citizens under Medisave and Medishield Life. Indeed, it really is imperative to purchase a health insurance plan that accommodates your preferences and your financial situation. Also, it is vital to keep in mind that private insurers' insurance plans might not include coverage for pre-existing diseases.

Today, the elderly can secure a sustainable future without putting their family members through financial distress, thanks to the numerous assistance programs for the elderly in Singapore. Have a part in providing for your senior loved ones by being aware of what they require for elderly financial aid and entrusting them to the reliable, qualified care of Red Crown’s caregivers.

 

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