SINGAPORE: On March 26, the Central Provident Fund Board (CPFB) and the Ministry of Health (MOH) launched a new online tool aimed at helping Singaporeans better understand the health insurance coverage they need for the future. According to the latest Straits Times report, this tool, called the Health Insurance Planner, is designed to give users a clear projection of their long-term MediSave savings, health insurance premiums, and out-of-pocket costs.
A personalised look at health insurance projections
The Health Insurance Planner, available on the CPF website, offers users a personalised view of their health insurance landscape. By inputting key information, individuals can see how their MediSave savings and health insurance premiums will evolve. The tool provides a long-term projection of premiums for up to 30 years, or until the user reaches the age of 90, and can be used to compare key features and premiums across various Integrated Shield Plans (IPs).
Integrated Shield Plans, which cover additional hospitalisation costs outside of MediShield Life, are widely popular, with 70% of Singaporeans currently holding an IP. The new tool also highlights the premium differences between various plans and insurers, making it easier for users to assess their options and choose the best coverage for their needs.
Projecting long-term premiums and costs
The Health Insurance Planner enables users to plan for the long term by projecting premiums for their selected IPs, along with any associated riders. These riders, which offer enhanced coverage, are typically paid for in cash, and users will see how much their out-of-pocket expenses will rise with the addition of a rider. This feature is particularly valuable in understanding the financial commitment required to maintain comprehensive health coverage throughout life.
Health Minister Ong Ye Kung emphasised the tool’s purpose in a video posted on social media, noting that it helps Singaporeans visualise how their premiums will accumulate over time and how this could impact their MediSave savings. He encouraged people to use the planner to make informed decisions by comparing premiums and benefits across different insurers and plans.
Aiding financial planning for health insurance
While the new tool offers a helpful way to project future premiums and compare plans, experts caution that users should still consult with financial advisors to ensure their healthcare protection plan aligns with their long-term needs. Chan Wai Kit, executive director of the Life Insurance Association, emphasised the importance of personalised financial advice, especially since healthcare needs can change at various stages of life.
MOH and CPFB have committed to keeping the Health Insurance Planner up to date, with data on premiums and benefits being refreshed annually each January. This ensures the tool remains relevant as health insurance plans evolve, especially in light of recent premium hikes by private insurers.
In an era when healthcare costs are rising, the Health Insurance Planner offers a valuable resource for Singaporeans to make more informed decisions about their health coverage and plan for a secure future.