Duplication Of Health Insurance Coverage A Drain On Elderly CPF

Many members of the pioneer generation are already covered by private health insurance schemes, such as IncomeShield, and use their Medisave funds to pay the premiums.

With the launch of the compulsory MediShield Life, they will have to pay an additional premium.

While pioneers will receive subsidies to offset the higher premium, servicing two policies will drain their Medisave funds, which were set at a lower ceiling in the past when they were still working.

The pioneer may even have to give up his existing private health plan. This is not prudent, given that the policy may have been in force for decades and include riders to offset other medical and hospitalisation expenses.

Also, an existing medical condition covered under the private plan will become a pre-existing condition under the new MediShield Life plan, and premium loading is inevitable.