Paying Your Private Hospital Bill with an Integrated Shield Plan: Rider vs No Rider

Medical emergencies and treatments are inevitable facets of life. While the priority is always health and recovery, the accompanying bills can be a source of stress. Integrated Shield Plans (IPs) aim to mitigate these financial anxieties, offering coverage that transcends what MediShield Life provides. Yet, with the option of adding riders to these plans, the choices become more complex. 

Do you need a rider? What are the pros and cons? This article aims to shed light on these queries.

Understanding Integrated Shield Plans

An IP is a health insurance plan that complements the foundational MediShield Life coverage all Singaporeans and Permanent Residents possess. An IP intends to provide enhanced protection, catering to those who opt for private healthcare services or higher-tier wards in public hospitals. It is dual-faceted:

• MediShield Life Coverage: This mandatory basic health insurance caters to large hospital bills and selected costly outpatient treatments.
• Private Insurance Component: This additional layer, offered by private insurers, addresses costs that might be incurred in private medical care settings or higher ward classes.

MediShield Life premiums are paid from the MediSave account. For the additional coverage of the private component, one can utilise MediSave up to a defined limit or make cash payments.

What Is a Rider?

A rider is an add-on or a supplementary plan to the main IP. 

The core rationale behind riders is to lessen the burden of out-of-pocket expenses. Even with a comprehensive insurance policy like an IP, there are still certain costs – notably deductibles and co-insurance – that fall on the shoulders of the policyholder. These amounts can be sizable, especially in the face of significant medical treatments. This is where a rider comes into play, reducing these additional costs significantly and ensuring policyholders don’t feel the full weight of medical bills.

However, it’s important to note that riders have a co-payment feature, mandating patients to pay at least 5% of their medical bills since March 2018. This change was instituted to promote prudent consumption of medical services and ensure that patients have a stake in their healthcare choices, however minor. While this might seem like an added cost, it’s a safeguard against the over-utilisation of medical services, ensuring the sustainability of the healthcare system for all.

Advantages of Having a Rider

Financial Safety Net: One of the primary benefits of having a rider attached to your IP is the additional financial protection it offers. Unanticipated medical situations can lead to substantial costs, potentially disrupting personal or family finances. With a rider in place, the brunt of such expenses is considerably diminished. 

In many cases, patients only need to pay a symbolic fee, ensuring that their financial well-being remains largely undisturbed even in the face of medical emergencies.

Peace of Mind: Health challenges often come with a mix of physical discomfort and emotional distress. The last thing anyone wants in such situations is the added burden of financial worries. A rider provides that essential peace of mind. 

Patients can rest easy, knowing that a significant portion, if not the entirety, of their medical expenses will be catered for. This assurance allows individuals to channel all their energy and focus on what’s truly important – healing and recovery.

Flexibility: Healthcare is deeply personal, and needs can vary widely from one individual to another. Some may prefer specific specialists or treatments, while others might have a penchant for the comforts of particular hospital wards. Riders grant policyholders the flexibility to make these choices. They ensure that you’re not restricted in your healthcare decisions by cost implications. 

Whether it’s opting for a more advanced treatment, choosing a private room for recuperation, or even selecting a renowned specialist, a rider ensures these choices remain within reach without the looming concern of inflated bills.

No Rider: Understanding the Trade-offs

Out-of-Pocket Expenses: One of the most immediate implications of not having a rider attached to your IP is the need to shoulder some of the expenses personally. While the main IP will still cover a significant chunk of the medical costs, the absence of a rider means that certain components, like deductibles and co-insurances, will fall on the patient. This can translate to a substantial amount depending on the nature and length of the treatment or hospitalisation.

Potential Savings: Every coin has two sides, and in the case of riders, opting out means potential savings. Riders, while providing added coverage, come with their own set of premiums. By deciding against a rider, you’re essentially cutting down on these additional costs. This approach might be favourable for individuals who’ve been diligent in creating and maintaining an emergency medical fund or for those who, after careful consideration, feel confident in handling a portion of their medical expenses directly.

Conclusion

The decision to opt for a rider when choosing an Integrated Shield Plan is deeply personal, hinging on one’s financial health, risk appetite, and healthcare preferences. While riders undeniably offer an added layer of financial protection and peace of mind, they come at a cost. 

On the other hand, going without a rider might be economically beneficial in the short term but requires readiness to bear a part of the medical expenses directly. It’s essential to assess your individual situation, understand the offerings in depth, and make an informed choice that aligns with your healthcare and financial needs.