Unraveling the Myths about Hospitalization Insurance in Singapore 2019

Hospital InsuranceIf you are reading this, chances are you are looking for a new hospitalization plan or just filling in yourself before really getting one.

Good choice. We at TheFinlens have just played detective and are now presenting you with our newest investigation report on common misconceptions and questions about hospitalization insurance in Singapore.

As you know, every Singaporean will automatically be included in a health insurance scheme by the Government called Medishield Life. It is an upgrade from the older version of Medishield, and is now active for a lifetime.

To improve the benefits provided by Medishield Life, many Singaporeans purchase additional insurance plan through Integrated Shield Plans (IP) and IP Riders.

In order to prevent confusion, here are the myths surrounding hospitalization insurance in Singapore:

Myth 1: Medishield Life cannot be used at private hospitals.

Logically it’s an insurance scheme by the government, so the facilities should also be available only at public hospitals, right?  Wrong.

Whether you are being treated or admitted at a public or private hospital, the amount you can claim from the Medishield Life is the same. If you decide not to apply for Integrated Shield Plan and want to rely solely on Medishield Life, it means any hospital fees surpassing the claimable amount from Medishield Life will be uncovered.

You can pay the rest using cash, Medisave, or other insurance plans.

Myth 2: Using Medishield Life without Integrated Shield Plans is enough.

Well, this is both myth and fact, depending on your preference and needs.

Medishield Life is a basic health insurance plan. While it covers large hospitalization bills including dialysis and chemotherapy for cancer, sometimes the bills cost you even more. Integrated Shield Plan acts as an additional plan to cover what is uncovered by Medishield Life.

Moreover, with IP you can be treated at better facilities with more comfortable wards and choice of doctors. Medishield Life offers treatment in public hospitals with B2/C type wards. If you want to upgrade to A/B1 type wards or even private hospitals, it is highly recommended to extend to Integrated Shield Plan.

Myth 3: I have Medisave already why need Medishield Life?

Medisave and Medishield Life are both created by the government; which is why it may lead to confusion as to why there are two of them. In fact, the confusion is unnecessary since they are two different things.

Medisave is a part of CPF, so the way it works is similar to CPF. It can be used to cover hospital bills, but it is limited to only $450 a day plus more amount depending on the types of surgery. On the other hand, Medishield Life is a mandatory health insurance scheme that is meant to help Singaporeans cover large hospital bills. It can be integrated with private insurance plan which can cover even larger bills.

Still, Medisave and Medishield Life are not totally unrelated. You can use your Medisave saving to pay for Medishield Life premiums and also to cover for bills uncovered by Medishield Life claim.

Myth 4: I can only be treated by doctors available at the hospitals

One of the most popular benefits of using Integrated Shield Plan is the choice of doctor and private hospital bills coverage. By using IP, you can choose which doctor to treat you based on the expertise. However the advantage does not stop there.

The thing about private hospitals is you can be treated by one doctor at one hospital but continue the treatment at a different hospital with the same doctor. Just imagine being treated at a hospital of your choice with a doctor of your choice.

However, do take a note that private insurance companies have their own preference on which doctors they want to work with, so please consult with your private insurer before hospital admission.

Myth 5: If I apply for riders, I don’t have to worry for any fees 

If Integrated Shield Plan is an addition to Medishield Life, a Rider is an addition to Integrated Shield Plan as an extra coverage.

Full Rider wasn’t actually a myth until recently. Unfortunately, starting from 1 April 2019, the government of Singapore decided to discontinue full rider and ask for a 5% co-pay. It means that when you make a claim, you will have to co-pay 5% of your full hospital bills instead of not paying at all.

If you still want a taste of Full Rider, do apply for one before 31 March 2019 because it will not change into co-payment rider until its renewal starting from 1 April 2021.


Those are the 5 myths surrounding hospitalization insurance in Singapore. Whether you plan to stick to Medishield Plan or extend to Integrated Shield Plan with or without riders, consult with TheFinlens so that we can help you make the right decision based on your financial condition. Your body’s health is not the only one that needs attention, your financial health also does.

Visit our Facebook or leave your contact here, so we can have a discussion regarding your future hospitalization plan. We can also help you choose the best private insurance company that can match your needs.

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