A Simple Guide to MediSave, MediShield Life & Integrated Shield Plans
Many patients feel confused when they are hospitalised and see terms like deductible, co-payment, or MediSave limits on their bills. This guide explains these concepts in simple, non-technical language.
1. What are the main layers of hospital coverage in Singapore?
Most Singaporeans are covered by three layers. They work together, not separately
- MediSave (CPF savings)
- MediShield Life (basic national health insurance)
- Integrated Shield Plans (optional private insurance)
2. How does a hospital bill usually get paid?
Total Hospital Bill
↓
MediShield Life / Integrated Shield Plan pays first
↓
You pay Deductible + Co-payment
↓
MediSave can be used (up to limits)
↓
Any remaining amount is paid in cash
3. What is MediShield Life?
MediShield Life is a basic national health insurance. However, it does not cover everything.
- It covers all Singapore Citizens and PRs
- It covers large hospital bills
- It applies for life, regardless of age or pre-existing conditions
4. What is an Integrated Shield Plan (IP)?
An Integrated Shield Plan (IP) is an additional private insurance. Most IPs also allow you to add a rider to reduce co-payment further.
- It sits on top of MediShield Life
- It covers higher wards (B1, A, or Private hospitals)
- It reduces the amount you pay out-of-pocket
5. What is a Deductible?
A deductible is the first portion of the bill that you must pay yourself before insurance starts paying.
- It applies per policy year
- It is higher for private hospitals
- It applies even if you have insurance
Example:
If your deductible is $3,500, you pay the first $3,500 of the bill.
6. What is Co-payment?
After the deductible, you still pay a percentage of the remaining bill — this is called co-payment.
- Usually 10% under MediShield Life
- May be lower if you have an Integrated Shield Plan rider
- Subject to annual caps depending on your plan
Example:
After insurance pays, you may still pay 10% of the remaining amount.
7. Can MediSave be used to pay Deductibles and Co-payments?
Yes — but with limits. MediSave can be used for:
- Deductibles
- Co-payments
- Approved daily hospital charges
- Approved surgeries and procedures
However:
- There are daily limits (e.g. $550/day for hospitalisation)
- There are procedure-specific caps
- Once limits are reached, the balance is paid in cash
8. Why do some patients still pay cash even with insurance?
Common reasons:
- MediSave limits are fully used
- Deductible not yet met
- Co-payment still applies
- Room type exceeds plan coverage
- Certain items are not claimable
Insurance reduces costs — it does not always eliminate them.
9. Simple Example (Private Hospital Stay)
| Item | Amount |
|---|---|
| Total hospital bill | $40,000 |
| Deductible | $3,500 |
| Remaining bill | $36,500 |
| Insurance pays 90% | $32,850 |
| Your co-payment (10%) | $3,650 |
| MediSave usable | Up to limits |
| Cash payable | Any shortfall |
10. Why planning ahead matters
Choosing the right hospital plan:
- Reduces stress during illness
- Protects retirement savings
- Minimises unexpected cash payments
Coverage should match:
- Your preferred hospital type
- Your MediSave balance
- Your long-term affordability
11. Where can patients get personalised advice?
Hospital bills and coverage vary widely. Patients are encouraged to:
- Review their plans before hospitalisation
- Understand their MediSave limits
- Seek independent advice if unsure
About the Contributor
This educational guide is contributed by Ray Alliance Financial Advisers Pte Ltd, an independent financial advisory firm, licensed by MAS in Singapore.
Financial Adviser Representative: Mr Philip Ong
Contact: 9856 9540
Email: philipong@rayalliance.com
Website: www.rayalliance.com
(No products are sold through this guide. Information is for general education only.)
