FINANCIAL THOUGHTS
What Is The Backlash If I Do Not Have Sufficient Healthcare Coverage?
Healthcare has ever been a major talking point not only in Singapore but also worldwide. We all know how serious this topic of healthcare is, and it does worry us at times. Especially when you know that certain illnesses are just unavoidable, and all you can do is pray.
Your Health “Bank Account”: MediSave
Nevertheless, in Singapore, we are fortunate that we have our Medisave account that takes care of certain hospital bills and we have our basic health insurance, Medishield Life which is administered by our Central Provident Fund (CPF). Keep in mind both only exist once you start contributing to your own CPF account.
Then here’s the question, “Why should I be worried if I already have both of the above?”
Let’s start with our Medisave account. Yes, you are able to pay your bills with your Medisave but there are limitations. For example, you are only able to use $450 per day for your stay at the hospital (inpatient).
As of now, it’s hard to say whether that is sufficient but a stay at a Ward A (single-bed) of a government hospital is approximately $450 – $500. And that is just the cost of staying there, not included the medication and surgery. Well once you are already warded, it is considered quite a serious issue. Hence there are certainly shortfalls if you solely rely on your Medisave.
Is Medishield Life enough?
Up next, Medishield Life. Coverage under Medishield Life only covers you up till ward B2 and C of a government hospital hence if you want to go to a higher ward; you will just have to top.
To make things clear, health insurance or hospital & surgical insurance benefits you by paying for your bills. No cash paid directly to you just because you are hospitalized. Basically, you don’t make a profit out of it.
Coming back to Medishield Life, your coverage for a stay in a ward B2 or C of a government hospital is capped at $700 per day. Which actually sounds like a good amount for the hospital bills.
The Urgency Of Healthcare
What is the worry then? Well for starters, almost everyone has MediShield Life hence if there were to be viral national outbreak of a disease or perhaps a case of suffocation due to the haze, everyone would rush to the hospital for treatment.
Whether you will get the immediate attention to get treated is questionable. But the number of beds compared to the number of sick people will be a worry. Even the staffs at the hospital might be outnumbered by the number of patients that are seeking for treatment. Hence that will definitely be an issue.
Difference in government and private hospital
You might already know the difference between a government and private hospital. The service, doctors, infrastructures and most importantly the waiting time, it all matters. I’m sure you want the best when it all boils down to life and death decision-making situations.
Yes it is expensive; hence that is why there is Private Medical Insurance (PMI) or Integrated Shield Plan. Its function is to reduce the financial burden that will land on you.
For You And Your Family
It is not only beneficial for you to get sufficient healthcare coverage; it is beneficial for your family as well. Imagine you are in a deep coma and your family is worried about both you and the bills. Day by day, the amount in the bill will only increase and it has to be paid whether you recover fully or unfortunately pass on.
Here is another good reason to have sufficient healthcare coverage. Imagine if you were involved in an accident, I doubt that you are conscious to even choose which hospital you want to go to. Therefore by having an enhanced healthcare insurance coverage, you do not really have to worry about where to go as you are able to go any hospital.
It is hard to see the needs of it now as we are in are healthy, safe and comfortable. But it will be a different matter once we are the one there seeking for answers and resources for a cure.
Well that’s the end of this article. Do share it if you think this is beneficial to your friends and family.
Disclaimer:
I am a financial adviser but I am not your financial adviser. Therefore, what is posted on this website, are my opinions and NOT to be taken as financial advice. Information provided might be relevant at this period of time but may be irrelevant due to alterations to rules, regulations or policies. The information provided is true to the best of my knowledge, but there maybe omissions, errors or mistakes.
