How to top up Medisave account? Wait a moment, first you have to know the Singapore Government has implemented a compulsory scheme for savings with the CPF (Central Provident fund). This is further split into three accounts, Special Account (SA), Ordinary Account (OA), and the Medisave Account. This Medisave is a medical saving scheme on the national level which can help individuals to keep aside some part of their income for paying the hospital bills either for self or for an immediate family member. This scheme covers specific outpatient expenses, surgery and also hospitalization. Understanding what Medisave is, is definitely beneficial and thus advisable.
Interest on Medisave:
Before you get deeper into what is Medisave you need to understand that all the money in the CPF accounts earn a specific interest depending on the type of account. The balance in your Medisave account earns almost 4% per annum. This can be termed as ‘extremely good’ as this is tax-free.
There is a specific limit to the amount a Medisave account can contain. This is termed as the BHS (Basic Healthcare Sum). This BHS amount is adjusted annually. Once an individual reaches 65 years of age the BHS account freezes. The Medisave account can contain only the BHS. Any additional money being put in the Medisave account goes to the Special Account. That is only if you are below 55 years of age, or to the Retirement account if you are older. Similar to the Medisave account, the Special account also earns a good interest of 4%.
Using the Medisave Account:
Understanding what is Medisave can be beneficial in the long run. Listed below are few tips to help you use the Medisave account in an effective manner.
*Have knowledge about what Medisave can be used for:
Presently, anywhere between 7% and 9.5% of your salary is deducted for the Medisave Account. The rate of contribution tends to increase as you grow old. Besides hospitalization, you can plan on using funds from the Medisave for outpatient treatments, health screenings or even for the premiums of Medisave.
There is a regular update by the Ministry of Health (MOH) on the list of different procedures that funds from the Medisave can be used for. This can bring down the out-of-pocket expense for an individual. You need to plan on using these funds only after seeking professional help so that you do not run out of money when you need it the most. Besides this, you also need to ensure that the minimum sum required in the Medisave account is not taken for any reason.
*Opting for MediShield:
Medishield is medical insurance scheme which is not only basic but also low-cost. This is apt for covering large hospitalization bills incurred at either B2 or C wards. The premiums of Medishield can be covered by the funds from the Medisave account.
The premium to be paid for private hospitals or higher class wards is more than the normal premiums. This can be done by opting for Integrated Shield plans available with private insurers.
At present you can use funds from the Medisave to pay the Integrated Shield plan premiums offered by Great Eastern, Aviva, AIA and more.
The integrated shield plans are different with each insurance company not only where the premiums are concerned but also the benefits offered. You need to consider not only the premiums but also the benefits offered before making a choice of the Integrated shield Plan.
Once you have the knowledge required on what is Medisave you need to be well aware of how to claim from the Medisave.
The Medical Claims authorization Form needs to be filled out for any claim to be made from the Medisave. The specific institution is given the authority to use the Medisave funds towards the treatment of self or a close family member. The paperwork might be a little complicated, but you have the medical institutions helping out with this.
Steps for top up on Medisave:
It is relatively easy to top up your Medisave Account.
*You need to log on to the CPF website and click on the ‘My Request’.
*Select ‘internet banking using e-cashier’.
*Select ‘Contribute to my Medisave’.
*Put in the amount you want to contribute to your Medisave Account after checking the permissible amount.
*Make a payment only after confirming the payment request.
There is a possibility of earning almost 6% interests on your savings in the Medisave Account. Besides which, you save on healthcare expenses not only for yourself but also for your immediate family. The best benefit is the tax relief you are offered with the Medisave account and the top –up. In case you are not too sure on what is Medisave account you have the option of seeking help from a qualified and experienced professional. It is advisable to plan on top up Medisave for long term benefits.