Tuesday, 3 November 2015

Hospitalisation Bill For My Wife

If you have read my earlier post (click here), you will know that my wife just went through a keyhole surgery. To be honest, the single bed ward at private hospital is comfy and did provide my wife a good rest and experience. However, it is costly indeed if you can't claim from shield plan.

As promised, I will be sharing on the bill size. The total amount of 1 night stay at a private hospital for the surgery, cost about $18,739.03. Plus the pre and post hospitalisation consultancy cost, should add up to about $20,000.



This entire $20,000 is paid by shield plan and medisave, with zero cash. When I purchased this shield plan and the rider to offset the co-insurance, I have done my mathematics whether it is worthwhile to pay extra cash for rider to offset deductible. The conclusion is, not worthwhile.

For easy calculation, I will give an example:

If person A live up to age 85 years old, an estimated insurance premium for extra rider to offset deductible will cost him around $53,000 (assuming coverage from age 30 years old onward). The deductibles are from $1,500 to $3,500, depending on the ward type he stay. Assuming he only go to private hospital, he will incur $3,500 deductible for the entire year. Let us assume he need to be hospitalised every decade, this means 6 times through out his lifetime. This will only come out to a bill size of $3,500 x 6 = $21,000. You still have a saving of $32,000.

Plus, this deductible can be paid by medisave, whereas, your rider has to be paid in cash.

If you need clarification on my calculations, you can email me or leave a comment. I will try to do my best to explain.

20 comments:

  1. Hi FD,

    Thanks for sharing. This is useful info.

    Wow.....private hospital bills are exorbitant! o__O "

    ReplyDelete
    Replies
    1. Hi DK

      Yes, private hospital bills are expensive. However, majority are paying for private shield plan but opt for public hospital ward C or B. Paying premium but didn't make full use of them.

      Delete
  2. Frugal Daddy,

    Alas... And I was so looking forward to using my one finger poke :(

    Glad someone can count.

    But then again, there will be those who plan to be hospitalised once a year so they will come out on top!

    Insurance is a strange thing. Just some weeks ago, there were actually people who we "celebrating" they managed to make a claim on their travel insurance?

    Insurance is like water. Drink too much water can get water poisoning!

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    Replies
    1. Hi SMOL

      Travel insurance is another creature altogether. I bought it with 50% discount anyway. You know young child fall sick easily.

      Don't drink too much water, but also don't dehydrate yourself. just nice, just nice.

      Delete
  3. Hi Frugal Daddy,
    Hope your wife is recovering well now. I have a friend who was promoting and encouraging us to buy rider (the maximum Gold type) because she was in and out of hospital for various ailments and was fully reimbursed because she bought the full rider insurance. Her family members, including father, brother-in-law, husband and even her son, were hospitalized or had day surgery for some reason or other. Of course, they were all on the plan and didn't fork out a cent eventually. t really don't know if it is a case of moral hazard or really "shuai" for her. For her it seems worthwhile to pay the yearly premiums by cash and by medisave! She was so proud that she stayed in a nice private hospital ward with "hotel-like" service and food and even had photos to show for it. And her agent, apparently, was very accommodating and processed her claims very quickly. With Medishield Life now, the premiums are going to increase, so I think I will have to give really serious thought to whether I want to upgrade my plan.

    ReplyDelete
    Replies
    1. Hi YP

      Your friend's family seems like having some health challenges. Hope their health are fine in the longer term. If her family can afford the extra premium to pay for the peace of mind, why not. Just that at the end of the day, she may actually incurred more cost from the premium of the riders compared to the actual deductible/co-insurance that they have to pay, depending on how expensive they are.

      Private single ward service is indeed good, but remember we are there to recuperate. I would rather not be sick than make use of such benefit (if we have choice).

      I think medishield life is good enough for C or B2 ward. But you desired better ward or private hospital for some reasons, then get a private shield if you can afford. You can choose to downgrade in future. You may want to do your math considering the amount in medisave and cash. I usually encourage people to have good shield plan. The rest of insurance like death, disability and critical illness coverages can be easily self hedged if you are frugal enough and earn average salary.

      Delete
  4. Hi FD,

    I think the point of insurance is to prevent unexpected and huge bills. What happens if the bill comes out to be 80 k and you hve to liquidate or borrow just to pay off? That's the purpose of insurance. If we're talking about small or mid level bills, then we can pay with our funds as most pple should have that amount of money in their emergency funds anyway. If not, you have to be prepared to lock up a huge part of your funds or be prepared to cash out regardless of whether it's a good time or not.

    To me, it's still worth it. Not all about the money - it's also a peace of mind.

    Glad that your wife is recovering well :)

    ReplyDelete
    Replies
    1. Hi LP

      Thanks for your well wishes.

      I think you just scan through my post content right? If you read carefully, I am referring to rider for deductible which only capped $1.5k - $3.5k a year. Even $800K bill will only have $3.5k deductible, the most. Hope this clarify. :)

      Delete
  5. Hi FD

    As long as the Mrs is well, the rest can wait.

    It's good that the insurance you've bought is utilized and materialised. It does really come at a time when it is least expected and good that you made plans and coverage for your family as and when needed.

    ReplyDelete
    Replies
    1. Hi B

      Frankly, there is that little worry about not being able to claim even I did my due diligence to read all the fine prints and checked with my agent before the surgery. However, finance is really the last thing i would want to think about at that point of time.

      Luckily everything went well. Plan what is controllable, the rest no point to worry.

      Delete
  6. Hi FD,

    Interesting point, never thought about it that way. Now I am still young so the rider cash portion is only a few hundred dollars but I will definitely give it more thought as I age. Hope your wife is recovering well and please take care of yourself too!

    ReplyDelete
    Replies
    1. Hi Jes

      I would think the younger you are, the more you should save on "unnecessary cost" because it will compound over the years. However, I am sure you can do your math well :)

      Thanks for your well wishes!

      Delete
    2. Hi FD,

      Yeah I was busy calculating... haha. Can I ask how about the co-insurance part? My friend said that if require specialist consultation and surgery will be so much higher bill.. so hope to understand more from you. Thanks!

      Delete
    3. Hi Jes

      It depends which plan you have. Actually, there are only that few shield plans in Singapore : https://www.moh.gov.sg/content/moh_web/medishield-life/integrated-shield-plans/comparison--of-integrated-shield-plans.html

      Different plans work differently and some premiums are more costly.

      You can email me if you want further discussion. Don't worry, I am not an insurance agent. :P

      Delete
  7. FD, you are correct. thank you for bring that out. The deductible is between 1.5k to 3.5k. So from your calculation, there is a saving of $32k..Will think about it. My shield plan didnt have the rider- as mine was NTUC but my husband and son have it.(under AIA). But if I opt for govt treatment (A class)- example endoscopy - is will cost around $2k then I have to with cash or my medisave casue it is under $3.5k. Will have to think about it when we retire.

    ReplyDelete
    Replies
    1. Hi Hosea

      I think you get the concept already.

      NTUC enhanced incomeshield come with an assist rider that I would think is quite good. You can tailor your plan according to your fund in medisave and your needs versus the premium along your age. For riders, there are many types. Please check the details and see what are suitable/cost saving in your case.

      You can actually find out more now given that you need to save some money for medisave for older age as the premium will exponentially grow too.

      Delete
    2. Hi FD,

      As a sick n suay chicken (used to be), insurance is a must for me although I did not buy until it happens. The lack of knowledge / money from my parents n myself when young is the reason.

      Now I try to protect my kids as comprehensive as I can, bcos I already can no longer insured myself with pre existing illness.

      Hope ur wife have a speedy recovery! Health is number 1!

      Delete
    3. Hi Rolf

      WIth Medisheild Life, you can stay at Ward B2 / C :)

      Thanks for the well wishes. I am sure you can self hedge on the missing part.

      Delete