For hospitalisation insurance, is private coverage rider necessary or no?

Rising Premium

Generally, there exists a need to create a sustainable model for healthcare insurance in order to fight against medical inflation in Singapore. For one thing, medical inflation hovered around 10% for the past two years. Consequently, if premium don't increase and insurers continue to payout higher amount of claims every year, then the insurer will go burst eventually. Obviously, this isn't something that you want, right?

Private vs Public Healthcare

Next, I don't think anyone needs to convince you to take up private hospitalisation coverage. Instead, if you feel that you are perfectly comfortable with seeking treatment in government hospital only, then go for that plan that suits you the most.

On the other hand, if you want to have access to private medical facility without any pro-ration, then private hospitalisation plan is the way to go.

Here is a comparison between the two: Private vs Public Healthcare Insurance in Singapore

Starter's Guide

Next, here is a starter's guide that I have written on integrated shield plan:

• Integrated Shield Plan Singapore: A Starter's Guide

• Integrated Shield Plan Rider Singapore: A Starter’s Guide

I believe it will be useful to help you understand the difference between an integrated shield plan and its rider. And no, it is not compulsory to take up the rider. However, I must repeat that this is based on the assumption that you are perfectly comfortable and financially capable to bear the cost of deductible and co-insurance on your own (more details in the blog post).

Comparison

Finally, here is a comparison of the seven insurers: https://www.moh.gov.sg/cost-financing/healthcar...

Above all, there isn't a best plan or the cheapest premium. Instead, it is always a tradeoff in one way or another. Be that as it may, it may be more worth to have an insurance agent who is capable of listening to you, and to help you with claims when the need arise. After all, we buy insurance to give us a peace of mind.

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Hi,

I think you would have to decide for yourself whether private hospital coverage is necessary for you. Of course, private hospital comes with its own benefits such as better services and rooms, etc. But it also comes with a higher premium. Looking at your current age, my advice is also to first take up the private plan since the premium is still considered affordable for your age. Btw, medisave can be used to pay for the premium. Furthermore you can always downgrade it in the future if the premium is too much for your budget, downgrading is always easier than upgrading from govt plan to private plan because upgrading requires medical underwriting.

As for riders, the premiums are paid in cash, medisave cannot be used to pay for riders. Riders are equally important too because it helps to cover the co-payment. If there is no rider, one will have to cover for the deductible and co-insurance while the insurance covers the remaining portion.

Example: What you will need to pay if no rider.

Total Bill: $10,000.

Deductible of $3,500 for private ward.

Co-insurance 10% of ($10,000 - $3,500) = $650.

You pay: $3,500 + $650 = $4,150.

Insurance pay: $10,000 - $4,150 = $5,850.

Previously, rider can fully cover all the co-payments meaning the insurance company will pay 100% of the bill. However, due to the new guidelines by MOH, all new riders must include a minimum of 5% co-payment.

Example: What you will need to pay rider is attached.

Total Bill: $10,000.

Co-payment 5% of $10,000 = $500.

You pay: $500.

Insurance pay: $10,000 - $500 = $9,500.

I would say rider is still important because in case of larger bill size, you may have to fork out alot more if there is no rider. As for the company with the better plans, I would recommend you to take a look at Great Eastern's Great SupremeHealth and Great Total Care rider, we offer the most comprehensive and competitive pricing in the market.

Feel free to contact me (email at bio) if you are interested to find out more about the two plans. Hope that answer your questions.

Cheers.