Singapore’s 3M’s national medical schemes – Medisave, Medishield and Medifund – provides a sound framework for taking care of the medical needs of Singaporeans and permanent residents, whether employed or self-employed.

Medisave is a national savings scheme where a percentage of income is set aside monthly for those on CPF. The self-employed also have to contribute to Medisave. Medisave savings are solely for medical needs only. It is primarily meant for hospitalisation, surgery and a few out-patient costs like kidney dialysis and chemotherapy.

Medifund is a welfare scheme to help those who are not able to take care of their medical needs. There are financial criteria to qualify for support.

Medishield is the insurance scheme which started off as a CPF insurance scheme, but has evolved into a scheme where CPF ultimately insures only the basic medishield portion, although it is administered by private insurers. The approved shield plans now carried by the insurers, provide vastly improved coverage and are expected to take much better care of the medical costs of Singaporeans and permanent residents.

Two innovations are particularly good – payment of expenses “as charged” and lifetime cover. However, not all the shield plans are “comprehensive”. Consumers should look out for the following features:

• No inner or sub-limits for ward, miscellaneous hospital expenses or surgery, i.e. “as charged”.

• No age limit, i.e. lifetime coverage.

• Must have high annual limits in excess of $100,000, e.g. Aviva’s annual limit is $300,000.

• Must have high lifetime limits in excess of $1 million, e.g. Aviva’s lifetime limit is $2 million.

If a plan has a high annual limit and lifetime limit but has terms and conditions like sub-limits, the real coverage can be much lower and will affect the amount of claims.

Generally, consumers should go for “as charged” plans.

A legacy of the CPF shield plans is the continued elements of deductible and co-insurance. However, a few insurers have provided the option for consumers to cover both of these or just the co-insurance, for an additional premium.