Heartland Boy had a rude shock when he received the electronic invoice for his daughter’s private hospitalisation insurance. He noticed that premiums had gone up once again, making it a cumulative 37% increase since inception. What makes it worse is that this is before the projected rise in premiums for MediShield Life that may take place as early as next year. Therefore, he can expect the Hospitalisation & Surgery insurance bill to rise again next year. Unfortunately, having a private healthcare insurance plan is imperative so this is an expense that he will not do without.

UNDERSTANDING THE INTEGRATED SHIELD PLAN (‘ISP’) STRUCTURE

Firstly, it is important to note that MediShield Life is compulsory and managed by Central Provident Fund (‘CPF’). If one purchases an integrated shield plan from a private insurance company, it will automatically include the MediShield Life component as shown in Diagram 1. That is because ISP provides additional coverage on top of MediShield Life.

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