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They sound the same, but their medical benefits are not. Wonder no more with these 6 key differences between Medisave and Medishield Life.
Despite the extensive coverage regularly given to government policies, I was still amazed to learn so many new things while doing my research for a recently published article on MediShield Life.
In today’s related article, we’ll take a closer look at the differences between MediSave and MediShield Life, a topic that causes no little confusion among Singaporeans.
And if that includes you, don’t feel bad. After all, both schemes have similar names and both refer to medical and sanitary issues. The two have very different roles entirely, though, and figuring out how they come together isn’t exactly a walk in the park.
| MediSave | MediShield Life |
| Savings in the CPF account used to pay for healthcare in Singapore | Insurance plan that covers medical expenses. Covers citizens of Singapore and RP |
| Financed by CPF contributions | Premiums paid through MediSave or in cash (if necessary) |
| Separate claims limit from MediShield Life | MediSave separate claim limit |
| May run out or run out | No lifetime claims limit, coverage is lifetime |
| Can be used to pay for family members’ medical premiums and outpatient treatments | For individual use only |
| It cannot be used for certain medical expenses. | Covers a wider range of medical expenses, when enhanced with IP |
Despite their close associations, MediSave and MediShield Life are two different things.
MediShield Life is a national health insurance policy designed to provide universal basic health care to Singaporeans and permanent residents. Like all insurance policies, MediShield Life collects premiums to meet claims made by beneficiaries.
So how are MediShield Life premiums paid? Using the funds in your MediSave account. In fact, you can think of your MediSave account as a savings account dedicated solely to medical uses.
Which brings us to the next point …
Your MediSave account is funded by your CPF contributions. If you are an employee, part of your monthly CPF deductions are automatically deposited into your CPF MediSave account.
For the self-employed, it is mandatory that you make your own contributions to MediSave; This depends on your age, business income, and other factors. (However, contributions to your CPF Ordinary Account or Special Account are not mandatory).
As we mentioned earlier, your MediShield Life premiums are paid automatically through your MediSave account. However, you can request an Integrated Shield (IP) plan to increase your Medishield Life plan coverage.
If you do, the premiums for your intellectual property can be paid in part using MediSave and the rest in cash.
This is perhaps the more confusing of the two. You can use both to claim your medical expenses, but there are different claim limits for each.
MediShield Life is a health insurance policy, so it provides certain benefits that are triggered when you need to pay medical bills. As you might expect, there are limits to the amount of your covered claims, and any excess amounts will have to be paid by other means.
Your MediSave can also be used to pay for your medical needs (the balance in excess of what your Medishield Life limit would have covered), but only up to a certain amount at a time.
So when you need to pay for, say, a hospital stay, which one should you use to pay?
As a general rule, MediShield Life comes first and any excess is paid with MediSave or in cash. See below for an example.
| Article | Cost / claim limit |
| Hospital stay (normal ward) | $ 1,500 per day |
| MediShield Life | $ 700 per day |
| MediSave | $ 450 per day |
| Balance to be paid in cash | $ 350 |
Please note that you do NOT have to use your MediSave. You can choose to pay the remaining $ 800 in cash.
However, if you decide to use your MediSave, you are subject to the withdrawal limit. In this case, $ 450 per day for a normal room. MediSave withdrawal limits apply no matter how much you have in your MediSave account at the time.
(If you have an Integrated Shield plan, you may be able to cover more than $ 700 per day provided by Medishield Life for your hospital stay in a normal ward. That allows you to pay less out of pocket).
As you continue to use your MediSave to pay your MediShield Life premiums, deductibles, coinsurance, and other medical expenses, such as long-term care, your MediSave balance will decrease and you may one day be depleted.
MediShield Life has an annual claims limit of $ 100,000, which means you can make eligible claims of up to $ 100,000 within one year. However, there is no lifetime limit – your MediShield Life policy will be in effect for life.
Despite the powerful nature of MediSave and MediShield Life, it is important to balance your medical needs with your financial means when deciding on a treatment plan.
All eligible Singaporeans will be covered by MediShield Life from birth or upon attaining permanent residency status, and each person will receive their own individual policy.
As such, MediShield Life is for your own use, and any remaining or unused claim limits cannot be transferred to someone else’s use (unlike joint insurance policies).
MediSave can be used to cover your own medical expenses, as well as those of approved dependents (defined as spouse, children, parents, grandparents, and siblings). You can use your MediSave to pay MediShield Life premiums on behalf of your dependents if they are unable to do so.
You can also use your MediSave to help pay for outpatient treatment for your dependents. The limit here is $ 500 per year per MediSave account and a 15% copayment applies.
Although MediSave has a wide range of uses, there are some expenses that it does not cover.
For example, you may need ambulance transportation and accident and emergency services during a medical emergency, but you cannot use MediSave to pay for them.
MediShield Life also has its own set of exclusions (yes, including ambulance and A&E), which means you will have to pay cash to cover these expenses.
However, adding an IP to your MediShield Life can extend your medical coverage to include these other expenses, thereby reducing your out-of-pocket costs when faced with a serious medical event.
The post What’s the Difference Between MediSave and MediShield Life – 2 Minute Explainer Appeared First on SingSaver Blog We compare, you save.
