Integrated shield plan with rider
Now that we have a better understanding of MediShield and the Integrated Shield Plan (ISP), let me introduce you to the cousin of ISP – Integrated Shield Plan with rider (ISP rider).
What is the difference between ISP and ISP rider? The main difference – you pay less when the hospital bills come. Sounds good? Of course! You need not worry so much about the bills while you are getting treatment in the hospital.
How is this possible? It is possible because this plan provides user with the choice to purchase the “rider” from insurance companies to cover both the deductible and co-insurance (refer to diagram below).
Let’s take a look at an example to illustrate the difference between MediShield, Integrated Shield plan (ISP) and Integrated Shield plan with rider (ISP rider).
Claim Computation for Singaporean in a Class B2 Ward with subsidies adjusted due to means-testing
Ward Class: B2
Length of stay: 5 Days
Procedure Performed: Unilateral Knee Replacement Operation
Pro-ration Factor based on Actual Adjustment of Subsidy: 87.5%
From the above table, we can see the difference in payout between MediShield, Integrated Shield plan and Integrated Shield Plan with rider (refer to last row). For MediShield insurance, you will need to pay $2,806.60 either from MediSave or cash; you need to pay $2,338 under the ISP and $0 for ISP rider. Get the picture?
Wait, this is too good a deal, what’s the catch? Yes, there is a small catch. As with all insurance you will need to pay a premium. The premium is paid through both Medisave and cash. The premium will also rise according to age band.
Let’s take a look at an example. In most private insurance provider, there are 3 plans available for ISP with rider.
- Plan 1: For individuals who chooses to be treated in a private hospital
- Plan 2: For individuals who chooses to be treated in ward A and below in a restructured hospital
- Plan 3: For individuals who chooses to be treated in ward B1 and below in a restructured hospital.
Example: Using Aviva Myshield premium and the rider Myshield plus
|Integrated shield plan(premium from medisave)||Rider(premium from cash)|
|Age band||Plan 1Private Hospital||Plan 2Restructured hospital (Ward A and below)||Plan 1Rider||Plan 2Rider|
Take for example, John, aged 35 and would prefer to be treated in a private hospital. This means that he would need to pay a total of $767.17 for his premium, of which $383.17 will be paid off her Medisave and $384 from in cash (Blue boxes). If John chooses plan 2, the premium is $518.21 per annum (Red boxes).
The premium will increase according the individual’s age and the corresponding age band. For an individual who is in the age bracket between ages 61-65, the premium will be $2,709.08 per annum if he/she chooses plan 1 and $2,090.14 for plan 2. Let’s take a look at the breakdown of premium a person needs to pay if he/she chooses plan 1:
Breakdown of premium from plan 1 with rider for an individual age 61 – 65
|Integrated shield plan premium||$1,589.08 (green box)|
|Less: Maximum Medisave withdrawal for integrated insurance plan||$800|
|Cash outlay (For the remainder of the premium)||$789.08|
|Add:Rider cash||$1,120 (green box for rider)|
|Total cash outlay per annum||$1,909.08|