Friday, September 2, 2011

Prevention is better

95% of countries, the medical trend or cost rate exceeded that of inflation. Singapore's medical cost rate is estimated at 8.4% this year, compared with 7.4% last year.

One very important way to cover the cost of health care is through insurance. Risk pooling enables insurers to offer cover to a fairly large group, at premiums that are relatively affordable.

It is prudent to take up such insurance while you are relatively young and healthy. Once illnesses develop, insurers may levy an extra charge, or even refuse coverage for what they call pre-existing conditions.

3 ways you can enjoy heavy subsidies

  1. Acute public hospital wards
  2. MediSave which earn 4% more then OA in your CPF
  3. MediShield and private Integrated Shield plans.
MediSave- Limited amount on inpatient and outpatient expenses. Important to note that Medisave is still cash. It should be prudently used. While you are working, the contribution rate to Medisave will vary depending on your age. The contribution rate is also adjusted annually to keep pace with inflation.

Should you retire or cease working and your contributions stop, cash in Medisave could run out fairly quickly given high health care costs.

Priviate Integrated Shield - Hospital and surgical (H&S) plans are one of the most basic of health covers, and are a must for most people unless you have enough wealth to self-pay. It is also important to take up H&S plans for your children.

Many people put off taking up a H&S plan because their employers may offer very good and comprehensive cover. But you will need a private plan should you stop working. Waiting until retirement to take up one is untenable because at a later age you may develop conditions that make you uninsurable.

Why I keep emphasising on Private Integrated Shield? It the most afforadable plan that you can get using your CPF medisave account.

If you need help in upgrading your MediShield plan, please drop me an SMS/Call me @ 91000078.

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