One of the most important social objectives of the Central Provident Fund Board is to provide healthcare coverage to its members (Singapore Citizens and Permanent Residents). The CPF Board allows you to choose from a range of insurance schemes that can take care of your healthcare not only in the present but also when you grow old.
The range of insurance schemes offered by CPF include coverage for various healthcare needs and requirements including paying large hospital bills, outpatient expenses, day surgeries, long term care in old age and many more benefits. Additionally, you can also use the savings in your CPF Account to insure your loved ones.
Types of CPF Healthcare Schemes
You can choose from the following insurance schemes offered by the CPF under health care benefits:
- MediShield Life
- Private Medical Insurance Scheme
Medisave is a national savings scheme that allows you to save for your medical expenses primarily after you retire. When you apply for Medisave you will have to set aside a chunk of your monthly income into your Medisave Account or MA which you can then use for your future medical expenses.
With Medisave you can use the savings in your Medisave Account under the following circumstances:
- Your future hospitalization.
- Your immediate family member’s future hospitalization.
- Day surgeries.
- Cover for select outpatient expenses.
Every month, a part of your salary will be credited into your Medisave Account. Even if you are self-employed and your NTI or Net Trade Income is above S$6,000, you will have to make contributions to your Medisave Account.
MediShield comprises of 2 features – Coinsurance and Deductible features under which the expenses incurred will first have to be paid using the savings in your Medisave Account or by cash before the remainder of the claim can be paid by MediShield.
IMPORTANT NOTE – MediShield has been replaced with MediShield Life starting from November 1, 2015.
This is a basic health insurance plan that you can use for paying off large hospital bills and certain expensive outpatient treatments. Using MediShield Life, you can get subsidized treatments across public hospitals in Singapore. You will still be covered under this plan if you choose treatment in private hospitals and Class A/B1 wards, however, in such cases MediShield Life will only cover a small portion of the bill. This is because payouts under this insurance plan primarily extend to Class B2/C wards.
MediShield Life replaced MediShield to provide the following:
- Better protection with higher payouts so that you pay less Medisave or cash for your hospital bills.
- Protect you for life.
- Protects everyone including the old and those suffering from pre-existing medical conditions that are generally not covered by other insurance policies.
- Covers expensive outpatient treatments such as chemotherapy for cancer and dialysis.
Coverage – All members including Singapore Citizens and Permanent Residents irrespective of what age they are will be covered by MediShield Life.
Private Medical Insurance Scheme
Private Medical Insurance Scheme or PMIS allows you to use the savings in your Medisave Account to purchase Integrated Shield Plans or IPs for yourself as well as your family members.
Integrated Shield Plan (IP) – This is a medical insurance plan that composes of 2 facets: the MediShield Life facet that is managed by the CPF Board and additional benefits provided by private insurers.
After MediShield Life replaced MediShield, the MediShield part of IP has also been replaced with MediShield Life.
Standard Integrated Shield Plan (IP) – Private insurance providing coverage for large hospital bills including certain outpatient treatments in public hospitals’ Class B1 Levels.
ElderShield provides basic financial protection for those requiring long term care. This is a severe disability insurance to provide assistance to members who are unable to undertake daily activities in their old age. You will receive cash payouts every month under this scheme for your expenses for a maximum of 6 years (72 months).
If you have a Medisave Account, you will be enrolled automatically into ElderShield once you turn 40 years of age unless you approach the CPF Board and opt out of this scheme. You need not register for this scheme or undergo any medical assessment.
No matter what your age is, the healthcare schemes offered by CPF provide medical coverage in various ways from paying for your day surgeries to paying for your large hospital bills and certain outpatient treatments. Using the healthcare schemes, you can insure yourself as well as your loved ones. You can also opt for IPs and get cover from your Medisave Account along with being insured by your personal/private insurance.