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2 things you must know about the recent changes to your Integrated Shield Insurance Plan

Dave Tay

14 June 2021

Are you having a hard time understanding the recent changes to your integrated shield plan (IP)? Over the past 16 years, I’ve assisted clients with countless hospital claims. The current changes which vary between insurers and IPs, are the most complicated I’ve seen yet.

An IP, also known as Private Medisave-approved Integrated Shield plan, comprises 2 components.

From 1 April 2021 onwards, there are significant changes you need to be aware of regarding your renewed IP, and how they will affect you.

"What do hospital gowns and shield plans have in common? You may not be covered for as much as you think you are."

- Dave Tay, and anyone who has ever worn a hospital gown

Here are two things you must know about the recent changes.

1. A minimum of 5% co-payment of claimable bills has been mandated for almost all IPs

This change will only affect you if you already own a rider that covers your co-payment. If you did not already have a rider that helps you offset co-payment, you would be required to co-pay in the event of a claim anyway.

When your policy renews from 1 April 2021 onwards, you will likely have to co-pay at least 5% of all claimable bills.

Following the implementation of the changes, even if you used to have a full coverage rider, you may need to incur both of the co-payment components upon your policy renewal. The amount of co-payment depends on what IP and rider you have.

2. Consider seeking treatment from a panel specialist on your insurer’s panel, and seek pre-authorisation if needed

In their efforts to combat overcharging, all IP insurers have their own panel of preferred doctors from which policyholders are encouraged to choose from.

To help you understand the changes, let us use Auntie Lucy as an example.

Lucy has the NTUC Income Enhanced Incomeshield Preferred Plan with the Plus rider*, which covers treatment in a private hospital. Previously, she was covered for up to 100% of claimable hospital bills. Her policy has recently been renewed on 1 May 2021.

What impact does this have on her in the event of a claim?

What can you do?

If you have taken umbrage to some of the changes, you are not alone. The views shared in an article written by a consumer may resonate with you.

He writes, “However, let’s be honest, how many of us read the fine print in any contractual document. Where insurance is concerned, our decision on whether to make a purchase hinges on the information or misinformation that has been presented by the agent.”

Auntie Lucy’s example would be applicable to others in her situation, but there are numerous other variations of IP plans with varying implications. If you own a Prudential IP**, for example, you might be subject to claims-based pricing that was already implemented before 1 April 2021. In layman's terms, claims-based pricing means receiving a renewal premium discount if you do not make any claims, but paying additional renewal premiums if you do.

However, given that we have no control over the changes, you should focus on what you can control.

For the discerning, here are 2 bonus takeaways:

One. For many policyowners, reading policy renewal letters is about as exciting as watching paint dry. However, given the significant changes, do set aside some time to review your latest renewal letter for policies renewing on or after 1 April 2021. Be sure to notify your financial consultant of any areas in which you need additional clarification.

Two. If you are advised to replace your IP policy with a new one, be mindful that sometimes it could be detrimental. The new policy could cost more, or offer less benefits at the same cost. Also, pre-existing conditions are usually excluded from claims, when you apply for a new plan.

Important to note:

This article is intended to raise awareness of the changes and how they may affect you. It is not meant to be a comprehensive guide to how all IPs work. Refer to the latest terms and conditions of your policy for full details.

Do not rely on any of this information without first consulting a professionally qualified expert. If you have any questions, please contact either me, your servicing Financial Consultant, or the financial institution directly.

Errors and omissions excepted.


"Dave was great in guiding me through the Integrated Shield Plan landscape.  He was incredibly patient in walking me through the process and very professional in assessing one's needs."

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