Health insurance can feel complicated, but understanding co-payments and deductibles can help you manage costs. In Singapore, these two cost-sharing features exist in both public and private health insurance plans. Let’s break them down in simple terms.

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What Are Deductibles?

A deductible is the amount you pay out-of-pocket for healthcare services before your insurance coverage begins within a policy year. Under MediShield Life, Singapore’s basic health insurance scheme, the deductible ranges from SGD 1,500 to SGD 3,000, depending on your age and the ward class you choose. For instance, if your hospital bill is SGD 5,000 and your deductible is SGD 2,000, you must pay the first SGD 2,000 before insurance covers the remaining SGD 3,000.

Source: CPFB

Understanding Co-Payments (Co-Insurance)

After meeting the deductible, you share a percentage of the remaining medical costs with your insurer; this is known as co-payment or co-insurance. Under MediShield Life, the co-insurance rate starts at 10% and decreases as the claimable amount increases. For example:

• For the first SGD 5,000 of the claimable amount: 10% co-insurance
• For the next SGD 5,000: 5% co-insurance
• For amounts above SGD 10,000: 3% co-insurance

Integrated Shield Plans and Riders

For better coverage, many Singaporeans opt for Integrated Shield Plans (IPs), which supplement MediShield Life with additional benefits from private insurers. These plans also involve deductibles and co-insurance. 

To reduce personal medical costs, policyholders can purchase riders that cover these expenses. However, since April 1, 2019, all new IP riders must include a minimum 5% co-payment to encourage prudent healthcare spending and prevent overutilization of medical services.

Why Do Deductibles and Co-Payments Exist?

These cost-sharing features serve to:

• Promote responsible healthcare usage: When patients share in the cost, they are more likely to make informed decisions about their medical needs.
• Ensure sustainability: By preventing overconsumption of medical services, deductibles and co-payments help keep insurance premiums affordable for everyone.