HI Integrated Shield Plans (IPs) 1 — Questions and Answers
Question 1: What is an 'Integrated Shield Plan' (IP) in Singapore's health insurance landscape?
- A comprehensive standalone private health insurance plan
- A plan that integrates MediShield Life (basic coverage) with an additional private insurance component, providing upgraded hospital coverage (Correct answer)
- A plan integrating medical and dental coverage
- A plan integrating CPF savings with private insurance premiums
Correct answer: A plan that integrates MediShield Life (basic coverage) with an additional private insurance component, providing upgraded hospital coverage
An Integrated Shield Plan combines the mandatory MediShield Life layer with an additional private insurance component from a private insurer, providing coverage for higher ward classes (B1, A, or private hospitals) and potentially reducing out-of-pocket expenses.
Question 2: What ward class does the basic MediShield Life tier cover, and how do IPs extend this?
- MediShield Life covers private hospital wards; IPs only cover public hospitals
- MediShield Life is benchmarked to B2/C wards in public hospitals; IPs can extend coverage to B1, A, or private hospital wards (Correct answer)
- MediShield Life covers all ward classes equally
- IPs reduce coverage to make it more affordable
Correct answer: MediShield Life is benchmarked to B2/C wards in public hospitals; IPs can extend coverage to B1, A, or private hospital wards
MediShield Life is benchmarked to B2/C ward rates in public hospitals. IP riders and plan tiers extend coverage to higher ward classes (B1, A class) in public hospitals or private hospitals, depending on the plan selected.
Question 3: What is an 'IP rider' and what role does it play?
- A motorcycle insurance add-on
- An additional insurance component purchased with an IP that covers deductibles, co-insurance, and other cost-sharing amounts, reducing out-of-pocket expenses (Correct answer)
- A discount offered for multiple IP policies
- A rider for pre-existing conditions coverage
Correct answer: An additional insurance component purchased with an IP that covers deductibles, co-insurance, and other cost-sharing amounts, reducing out-of-pocket expenses
An IP rider is an add-on that covers the cost-sharing components of the IP — the deductible and co-insurance — reducing the insured's out-of-pocket expenses at the point of claim. However, from 2021, riders must include a minimum co-payment feature.
Question 4: Why did MAS introduce mandatory co-payment requirements for IP riders from 2021?
- To increase insurer profitability
- To ensure insured persons retain some financial stake in healthcare decisions, encouraging cost-conscious behavior and reducing overconsumption of healthcare (Correct answer)
- To standardize premium rates across all IP providers
- To reduce the number of IP riders available in the market
Correct answer: To ensure insured persons retain some financial stake in healthcare decisions, encouraging cost-conscious behavior and reducing overconsumption of healthcare
MAS mandated minimum co-payment requirements (5% co-pay, minimum S$3,000) for IP riders to ensure policyholders retain some financial stake in their healthcare choices, discourage over-utilization of premium healthcare services, and help contain medical inflation.
Question 5: Which Singapore private insurers are approved to offer Integrated Shield Plans?
- Any Singapore-registered insurer
- Only MAS-approved insurers specifically designated for IPs — currently AIA, Aviva (now NTUC Income), AXA (now HSBC Life), Great Eastern, and Prudential (Correct answer)
- All CPF-registered financial institutions
- Any ASEAN insurer with a Singapore branch
Correct answer: Only MAS-approved insurers specifically designated for IPs — currently AIA, Aviva (now NTUC Income), AXA (now HSBC Life), Great Eastern, and Prudential
Only specific MAS-approved private insurers are permitted to offer Integrated Shield Plans in Singapore, currently: AIA, NTUC Income, HSBC Life (formerly AXA), Great Eastern, and Prudential — each integrating with the MediShield Life base layer.
Question 6: What is the 'pre-authorisation' requirement in some IP plans and why is it important for policyholders?
- Authorization from MAS before purchasing an IP
- A requirement to obtain insurer approval before certain planned procedures or specialist referrals to ensure coverage and avoid surprise rejections (Correct answer)
- Authorization from the CPF Board to use Medisave for IP premiums
- Approval from a doctor before any hospitalisation
Correct answer: A requirement to obtain insurer approval before certain planned procedures or specialist referrals to ensure coverage and avoid surprise rejections
Pre-authorisation requires policyholders to notify and obtain approval from the insurer before undergoing certain planned procedures or specialist treatments. Failing to pre-authorise may result in claims being rejected or benefits being reduced.
HI Integrated Shield Plans (IPs) 1
What is an 'Integrated Shield Plan' (IP) in Singapore's health insurance landscape?