Medical, Insights | 01 June 2021
If you think of Singapore, what are the things that come to your mind? That’s right, the economic and medical advancement. Singapore to reign as Regional Medical Hub has earned its place by continuously meeting the increasing healthcare needs of its populations, as well as having tourists coming from around the world coming to Singapore for treatment.
Less than a decade ago, Singapore’s healthcare system was ranked as the sixth best in the world and the best in Asia by the World Health Organization in 2000. Today, Singapore has clearly emerged even further as a major medical centre for Asia Pacific and a world-class healthcare hub; comprised of not just high quality health services, but complimentary research and education capacities as well through world-class collaborations. By Medical Tourism Magazine.
Since Singapore appears on the top-list of world’s best healthcare system, it is not surprising to find that the medical cost will also be the world best. For example, an appendectomy in a restructured hospital can cost you up to S$9,400 and up to S$20,400 in a private hospital depending on the type of room and services you ask for. Get more information about medical fees in Singapore on the Ministry of Health’s website.
Also, with wealthy tourists coming in Singapore for higher-end medical treatments on a yearly basis, Singapore medical inflation is also a no joke. According to SmartWealth.sg, it is estimated that Singapore’s medical inflation rate for 2019 and 2020 was a whopping 10% per year. And when we look at our own national data from 2000 to 2020, the cost of healthcare increased by 57.46% and the average healthcare inflation was 2.3%.
What can you do about the rising costs?
All Singapore Citizens and Permanent Residents are covered by the national health insurance scheme, MediShield Life, which is meant to provide basic hospitalisation needs. Of course, we are also given the choice to enhance this coverage with an Integrated Shield Plan (IP), for a comprehensive hospitalisation needs.
An Integrated Shield Plan (IP) provides coverage on top of your MediShield Life. Different types of IPs provide different coverage, ranging from ward (A/B1) in a restructured hospital, to admission into a private hospital.
An IP comprises of two parts:
- MediShield Life which you’re already covered for
- Additional private insurance coverage offered by a private insurer
Your MediShield Life coverage is made compulsory and is fully payable from your MediSave account. You will need to top up using cash for the additional premiums for an IP coverage.
With an IP enhancement, comprises of two parts as well, you may use MediSave to pay for the Basic private insurance component, up to the prevailing Additional Withdrawal Limits. You will have to pay the premiums in cash for the riders.
However, with effect on 1st April 2021 onwards, there is an island wide major changes for most of the IPs that will only cover for 95% of the hospital bill, for all the new applications as well as the existing PolicyHolder upon renewal. It is believed to have cushioned against the sky high medical costs and medical inflations.
What if you’re a foreigner? What can you do against the rising medical costs in Singapore?
You may be saying, you are well covered by the company you’re employed under. The question is, are you really?
Or you have sufficient medical insurance in your home country. Can you really claim should anything happens here?
According to MOM, it is only compulsory for the employers to buy medical insurance for Work Permit up to a minimum of S$15,000 a year, and work injury compensation insurance if you’re working under high hazardous environment.
The rest will be based on the employees benefits that your employer decides to cover you for. Based from my opinions, it is often very minimal coverage that an employer would give, and focusing more on GP instead of hospitalisation.
As a foreigner in Singapore, you will be subject under ‘foreigner rates’ regardless of public hospital or a private hospital. It is utterly important to cover yourself with a local medical insurance when you’re far from your home country.
Your insurance in home country may only stay effective when you didn’t reside outside of your home country more than 180days. What happen when you leave for more than 180 days? Unfortunate to tell you the insurance may not cover you for should any hospitalisation needs arises. And yes, amid the global pandemic that most of us are lockdown in different places (not by choice), insurers may have also extended the coverage for you when you’re stuck outside of your home country even for more than 180 days! Good news no? The fact is, it is still good to have a local medical insurance in the country that you’re residing in.
Why? Because when your insurance is not issued from the country that you’re residing in, it will be very manual. You will need to make the full payment in cash to the hospital first before you could file the claims back in your home country. As quoted from above, Singapore being on the top-list of the world class medical facilities, you may be expecting a world class medical bills as well.
So, what can you do about it? Well, good news there are some insurers are extending the medical coverage of an IP to foreigners too. Different insurers may have different practice, some offers with ‘foreigner rates’ and some offers the exact same amount of premiums with terms and conditions (e.g. private hospital package only).
You may need to pay cash for the entire premiums (as you do not have a MediSave account, under the Centre Provident Fund (CPF), and you’ll be well covered for!
External Links:
7 Healthcare Cost Statistics in Singapore (2021): How Expensive Is It?
Singapore ~ Healthcare Hub and Medical Marvels
MOH Singapore
Medical Insurance Requirements for Foreign Worker