SINGAPOREANS should not await the full details of means testing before buying the right medical insurance plan to defray the cost of hospitalisation, said Mr Eddy Cheong, who heads financial advisory firm Providend's family office services. He noted that people tend to procrastinate when it comes to reviewing their medical insurance.
'Maybe the thinking is that hospitalisation won't happen to them or that they could easily go for the cheapest ward, that is, Class C, to reduce cost.
'With means testing, not everyone is eligible for the full subsidy of the ward and hence they have to pay more either in cash or from Medisave,' he said.
Said Mr Stanley Jeremiah, the managing director of Convergys Employee Care, Asia Pacific: 'There is more reason now for the man in the street to ensure that he has a lifetime medical insurance plan and that he puts aside enough money for insurance premiums post-retirement.'
Currently, private Shield plans can be funded from one's Medisave account, subject to an annual cap of $800.
However, as the premiums rise with one's age, it is important to ensure that one has sufficient monies to fund future premiums to prevent policies from lapsing.
Another reason to buy health plans early is insurability. Insurers shy away from covering conditions such as high blood pressure
so it is best to purchase a health plan while one is still young and healthy.
In fact, some experts advise going for the highest health cover that one can afford.
This is because insurers allow you to switch to lower-priced plans without underwriting, or assessing your health condition, but the reverse is not permitted.
People typically delay buying personal health plans because they are already covered by their employer's insurance programme.
However, most of these programmes are not portable and the cover ceases when the person leaves the job. By that time, he may no longer be considered insurable if he has been diagnosed with certain medical conditions.
It is a fact that health-care cost will continue to rise as patients demand better medicines and procedures.
All over the world, medical inflation typically exceeds general inflation.
A lucky few might have ample savings to dig into for their health-care expenses, but the majority are better off transferring some of the risk and cost of health care
to insurers in return for a premium that can be paid out of Medisave.