Cancer is the #1 cause of death in Singapore.
According to the Ministry of Health (MOH), cancer drug spending grew by 20% per year between 2016 – 2019, which is not sustainable.
To address this, MOH had announced changes to the Medishield Life and Integrated Shield Plan (IP) coverage, and established a Cancer Drug List (CDL).
What is the Cancer Drug List?
The CDL is a list of claimable outpatient cancer treatments. This was created to ensure that the cost of cancer treatment and insurance premiums remain affordable over time.
When does this take effect?
Before April 2023, cancer treatment coverage is processed “as charged” under hospitalisation insurance plans (Integrated Shield Plans).
However, from April 2023, cancer treatment coverage on the Cancer Drug List will be limited, and non-CDL drugs will only be covered by riders with varying limits between insurers.
By now, you should have already been approached by your insurance agents with regards to this update.
If you’re still unsure, here’s a quick explanation of why you should care about the new Cancer Drug List:
How will this affect you?
According to a report by the Health Promotion Board, “1 in every 4 to 5 Singapore residents, male or female, is likely to develop cancer in his or her lifetime.”
It is estimated that 1 in 10 patients treated in the public sector will not have their current treatment covered by drugs in the Cancer Drug List. The number is expected to be higher in the private sector.
You should not assume that all cancer treatments provided by public hospitals will be covered by your hospitalisation insurance. It is important to check if the treatment is under the Cancer Drug List.
Even if it is under the Cancer Drug List, you will still need to fork out cash, if the treatment cost exceeds your coverage limits.
Yes, hospitalisation plans can be revised…
Revisions of hospitalisation policies only require a 31 days prior notice:
Hence, it is impossible to predict what other changes may occur in the coming years.
Since 2018, hospitalisation insurance has been revised quite frequently. Some changes include:
- Added mandatory co-payment to hospitalisation insurance cash riders,
- Added panel vs non-panel doctor and with different claim limit,
- Premium revision due to higher claim experience,
- Cancer treatment is not as charged coverage and only for approved drugs on the cancer drug list.
How to cover the shortfall?
We should look at alternative options to cover this potential gap in our insurance portfolios.
In this case, Critical Illness Insurance can help to plug potential shortfalls in hospitalisation insurance, if our preferred cancer drug treatment is not covered as charged.
Critical Illness Insurance 101
There are two types of Critical Illness (CI) insurance:
- single payout CI coverage (Early or Advanced Stages) and,
- multipay CI coverage (Early and Intermediate and Advanced and Recurrent Stages).
These plans pay out cash in a lump sum, which you can choose to use for treatment not covered by your hospitalisation insurance. You can also use this payout to cover any loss of income and use it for your living expenses.
As April 2023 approaches, these changes to hospitalisation insurance will begin to take effect.
You should review your coverage and determine if you need to cover any gaps, so that you don’t get caught in a bad position should the unfortunate happen.
All the above are just my personal sharing. Please speak to your financial advisor if you need any advice on your insurance. If you need help, please let me know here.
