Have you ever received a hospital bill, confident that your Integrated Shield Plan or MediShield Life would cover everything, only to realize you still have to pay a portion out of your own pocket?<\/p>\n\n\n\n
If this sounds familiar, you’ve likely encountered two of the most common yet frequently misunderstood health insurance terms: deductible<\/strong> and co-insurance<\/strong>.<\/p>\n\n\n\n Think of a deductible as the “entry ticket” you have to buy before your insurance benefits kick in.<\/p>\n\n\n\n A deductible is a fixed, initial amount you must pay out-of-pocket for your medical expenses each policy year before your insurer starts paying. <\/em><\/strong><\/p>\n\n\n\n How it works: <\/strong>If your Integrated Shield Plan (IP) has a deductible of $3,500, you have to pay the first $3,500 of your hospital bills in that policy year. Once you hit that amount, the insurance starts covering the subsequent eligible costs for the rest of the year. <\/p>\n\n\n\n The silver lining:<\/strong> You only need to pay this once per policy year. If you have multiple hospital admissions in the same year, you won’t have to pay the deductible again once it’s met! <\/p>\n\n\n\n In Singapore, deductibles generally range from $500 to $4,500<\/a>, depending on your age and the ward class you choose (e.g., Ward C vs. a Private Hospital).<\/p>\n\n\n\n Source: CPF<\/a><\/p>\n\n\n\n Even after you’ve paid your “entry ticket” (the deductible), you aren’t completely off the hook. This is where co-insurance comes in.<\/p>\n\n\n\n Co-insurance is essentially splitting the remaining bill with your insurer. It is a fixed percentage of the claimable amount that you must co-pay after the deductible has been met.<\/em><\/strong><\/p>\n\n\n\n How it works:<\/strong> For most Integrated Shield Plans in Singapore, the co-insurance is usually set at 10%. This means you pay 10% of the remaining bill, and your insurer covers the other 90%.<\/p>\n\n\n\n Under standard MediShield Life, the co-insurance rate actually drops (from 10% down to 3%) as the bill gets larger. <\/p>\n\n\n\n1) What Is A Deductible<\/strong><\/h2>\n\n\n\n
2) What Is Co-insurance<\/strong><\/h2>\n\n\n\n