The rider for an integrated shield plan helps to reduce the out-of-pocket cost incurred under your main integrated shield plan (“Main IP”). When you purchase your Main IP, you can also purchase the integrated shield plan rider (“IP Rider”). Similarly, existing Main IP policyholders may also choose to add the IP Rider to their integrated shield plan. Since this is an optional add-on, let’s evaluate whether you should include the rider for the integrated shield plan in your private health insurance policy.

Integrated Shield Plan Riders will need to comply with the new requirements by April 2026 and I will update this post in due time. Meanwhile, here is what you need to know and how it affects you: Integrated Shield Plan Rider Changes Singapore: What You Need to Know

Table of Contents:

1. What is the Rider for an Integrated Shield Plan (“IP Rider”)
2. Deductible and Co-Insurance vs Co-Payment
3. Cancer Drug Treatments and Cancer Drug Services
4. Cost of Rider for Integrated Shield Plan over Time
5. Should You Get a Rider for the Integrated Shield Plan?
6. Final Thoughts

One Minute Summary:

• The rider for an integrated shield plan helps you to consolidate and limit the out-of-pocket cost for your medical bill.
• Regardless of the medical bill size, the IP Rider will definitely reduce your out-of-pocket cost.
• Additionally, the rider for the integrated shield plan enhances the insurance coverage for the Cancer Drug Treatments and the Cancer Drug Services.
• As the integrated shield plan rider comes at an additional cost, you should determine whether you can afford the additional cost of insurance over time.

Part 1: What is the Integrated Shield Plan Rider (“IP Rider”)

Basically, the integrated shield plan rider is an optional add-on under the private health insurance scheme, integrated shield plan. By attaching the IP Rider to the main integrated shield plan (“Main IP”), the IP Rider will cover the cost of the deductible and co-insurance incurred under the Main IP. Under those circumstances, you will pay for the co-payment component of the medical bill instead.

It is important to realise that the IP Rider is not a standalone plan. This means that you must have the main integrated shield plan before you can purchase the IP Rider. Furthermore, the type of IP Rider that you can purchase is tagged to the type of Main IP that you are holding onto. For example, if your Main IP provides cover for both private and public hospitals, then the IP Rider will also cover both types of hospitals.

Part 2: Deductible and Co-Insurance vs Co-Payment

The sum of the deductible and the co-insurance component of a medical bill will be higher than the co-payment component of the same medical bill. This explains why it makes sense to attach the IP Rider to your main integrated shield plan. To prove this point, let’s go through a series of examples together. In this set of examples, we will assume that the patient stays in a private medical facility in Singapore.

Here are some observations that we can make from Table 1 – When You Have the Main Integrated Shield Plan only.

1. Firstly, for smaller-sized medical bills, the deductible component will make up for the majority of the cost that you need to pay. (E.g. $5,000 Medical Bill)
2. That being said, for larger-sized medical bills, the co-insurance component will make up for the majority of the cost that you need to pay (E.g. $500,000 Medical Bill)
3. In general, it is straightforward to cater to paying for the deductible component of the medical bill. This is because the insurer designed it as a fixed cost. Moreover, in most cases, the maximum deductible that you need to pay in a policy year is $3,500. Consequently, this makes it easier for us to plan our budget.
4. However, the co-insurance component of the medical bill is more complicated. This is because the insurer designed it as a variable cost. As can be seen in the table, for smaller-sized medical bills, the co-insurance component may be $150. That being said, for larger-sized medical bills, the co-insurance component may be over $50,000. Obviously, there is a marginal difference in both figures.

Next, here are some observations that we can make from Table 2 – When You attach the Rider to the Main Integrated Shield Plan.

Before that, it is important to realise that different insurers may provide a different scope of coverage to their clients. With this in mind, I will highlight the common benefits that all the insurers offer. Consequently, if you choose a plan with a different benefit, then you should make adjustments to your calculations accordingly.

1. Regardless of the size of the medical bill, you will pay the co-payment component of the medical bill only.
2. Although this is more straightforward than the earlier case (i.e. without IP Rider), the co-payment is still a variable cost. As a result, the difference in co-payment may be significant for a $5,000 medical bill vs a $500,000 medical bill.

Part 3: Cancer Drug Treatments and Cancer Drug Services

At present, the Main IP imposes a sub-limit on the insurance coverage for the Cancer Drug Treatments and the Cancer Drug Services that are on the Ministry of Health’s Cancer Drug List. Furthermore, the Main IP no longer covers the cost of Cancer Drug Treatments that are not on the MOH’s Cancer Drug List. As a result, if you prefer to enhance your insurance coverage for the Cancer Drug Treatments and the Cancer Drug Services, then you will need to purchase the IP Rider.

As can be seen from the table above, in some instances, purchasing the IP Rider alone is still not enough. To illustrate, AIA Max VitalHealth A, Raffles Key Rider, and Singlife Health Plus Private Prime do not provide any additional insurance coverage for Cancer Drug Treatments and Cancer Drug Services. To enjoy additional insurance coverage, you will need to purchase an add-on on top of the IP Rider.

Part 4: Cost of Rider for Integrated Shield Plan Over Time

Evidently, the observations that I have made earlier seem to suggest that it is beneficial to get the rider for the integrated shield plan. This is because the IP Rider can reduce your out-of-pocket cost for your medical bill. But before you submit an insurance application, you should also look into your budget and long-term affordability. Summing up, here are two blog posts that I have written to highlight the cost associated with the rider for an integrated shield plan:

• Lifetime Cost for Private Health Insurance Singapore
• Total Cost for Public Health Insurance Singapore

Part 5: Should You Get a Rider for the Integrated Shield Plan?

Here are some other factors for you to consider:

1. What is your healthcare expectation? Do you prefer be treated in private hospitals or to seek unsubsidised care at public hospitals?
2. Do you have any existing medical conditions or family history of major illnesses?
3. Does your lifestyle increase health risk?
4. What is your age and are you financially prepared to take on this financial risk for as long as you live? For instance, co-insurance is payable on each claim. This amount can grow significantly for large bills.
5. Do you want greater peace of mind from coverage beyond the main integrated shield plan? For example, many IP Riders provide coverage for cancer drug treatments and services not on the Cancer Drug List.
6. Is downgrading your rider an alternative option?
7. What is your strategy to afford the rider in the long-term?

Part 6: Final Thoughts

To conclude, a rider for the integrated shield plan consolidates and limits your out-of-pocket cost for your medical bill. As result, you will pay a smaller fraction of the entire bill; that is, the co-payment component only. Summing up, the IP Rider will work well for medical bills of all sizes. Therefore, you can be assured that you will not receive a bill shock.

Additionally, since the introduction of the Cancer Drug List on 1 September 2022, Ministry of Health set a sub-limit on how much cancer coverage the Main IP is able to provide. To overcome this limitation, most of the IP Riders push the limit further (in a good way). Consequently, if you wish to enjoy better insurance coverage for cancer, then you may wish to consider the IP Rider or its similar add-on.

Although all these seem to suggest that you should purchase the IP Rider, you must recognise that it comes at an additional cost. In fact, most of the IP Riders cost more than the Main IPs. As a result, you should also consider your budget and long-term affordability. Finally, it is important to realise that the insurer may change the benefits and cost associated with the IP Rider Therefore, you should not be completely reliant on an integrated shield plan to meet all of your healthcare needs.

First Published: 10 April 2019
Last Updated: 9 August 2024