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What is the purpose of the Deductible in Medishield?
19 Jan 2014 (1 view)  

A policyholder incurred $1,800 in medical expenses as a result of an accident. He made a claim on Medishield and was told that it falls within the Deductible. Here is his e-mail to the Central Provident Fund, which administers Medishield:
 
I understand what you said, namely that if my claim exceeds $2,000 there will be a payout from Medishield but if it is less than that amount (in my case, about $1,800) then this claim will not be paid out but kept  as a credit in my Medishield account until I can meet the $2,000 minimum claim. But I do not understand your rationale. 

What if I am fortunate enough never to make any more claims from my Medishield account? Does that mean Medishield will not have to pay my $1,800? Then what is the point of taking up a Medishield policy? 

He sent a copy of his e-mail for my comments.

MY REPLY

Medishield is designed to cover hospital bills exceeding $2,000 in each year. The first $2,000 is intended to be paid by the patient from Medisave account.
 
For example, if the policyholder's hospital bill is $10,000 in a year, Medishield will pay $8,000. 
 
The idea of having a deductible of $2,000 in a year is to avoid the small claims that the patient can afford to pay on his own. As Medishield covers only the large bills, and the incidence is low, the premium is low. For people below age 40, the premium is less than $100 a year.
 


What is the purpose of the Deductible in Medishield?
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A policyholder incurred $1,800 in medical expenses as a result of an accident. He made a claim on Medishield and was told that it falls within the Deductible. Here is his e-mail to the Central Provident Fund, which administers Medishield:
 
I understand what you said, namely that if my claim exceeds $2,000 there will be a payout from Medishield but if it is less than that amount (in my case, about $1,800) then this claim will not be paid out but kept  as a credit in my Medishield account until I can meet the $2,000 minimum claim. But I do not understand your rationale. 

What if I am fortunate enough never to make any more claims from my Medishield account? Does that mean Medishield will not have to pay my $1,800? Then what is the point of taking up a Medishield policy? 

He sent a copy of his e-mail for my comments.

MY REPLY

Medishield is designed to cover hospital bills exceeding $2,000 in each year. The first $2,000 is intended to be paid by the patient from Medisave account.
 
For example, if the policyholder's hospital bill is $10,000 in a year, Medishield will pay $8,000. 
 
The idea of having a deductible of $2,000 in a year is to avoid the small claims that the patient can afford to pay on his own. As Medishield covers only the large bills, and the incidence is low, the premium is low. For people below age 40, the premium is less than $100 a year.