Monday, March 5, 2012

Greater transparency needed on Medishield payments

Every year the Central Provident Fund Board (CPF) sends out CPF statements to its account holders giving details of how much contributions have been made it through the Ordinary account, the Special account, the Medisave account and the Retirement account. 

There is also a notification to inform the account holder if he/she is covered by Medishield.

Since the inception of the Medishield scheme, I have been faithfully paying premiums every year for both myself and my wife for more than 10 years. Although Medishield deductions are made known annually in the CPF statement, account holders do not know how much they have paid over the years simply because there are no details documenting the accumulated premiums paid in the CPF statement. Why is this so?

Just as there are reflections of how much contributions have been made for CPF contributions, shouldn’t the same apply for Medishield payments? For example if an account holder has paid Medishield premiums at say, $100 per year, the total amount for 10 years standing at $1,000 should be stated for this scheme  in the annual CPF statement so that account holders are fully aware how much premiums has been paid to-date.

With the government encouraging Singaporeans to take up medical insurance, shouldn’t there be more transparency on Medishield premiums paid?

Another disturbing feature is that it is always so difficult to make a claim on Medishield when one is hospitalized.


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