Integrated Shield Plans (IPs) Flashcards

What is an 'Integrated Shield Plan' (IP) in Singapore's health insurance landscape?

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.

What ward class does the basic MediShield Life tier cover, and how do IPs extend this?

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.

What is an 'IP rider' and what role does it play?

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.

Why did MAS introduce mandatory co-payment requirements for IP riders from 2021?

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.

Which Singapore private insurers are approved to offer Integrated Shield Plans?

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.

What is the 'pre-authorisation' requirement in some IP plans and why is it important for policyholders?

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.