In Singapore, the cost of living has been increasing year after year. The same goes to medical costs.

Cost of admission for common diseases:

Medical Bills

“This is a guest post from Verlin Tan,
Financial Planner representing HSBC Insurance Singapore,
specializing in Wealth Management.”

Thus, how is one being safeguarded from the hefty costs of hospitalisation? 

Imagine Billy, age 30, a Singaporean, was hospitalized due to lung cancer. Where will money comes from to pay the bill without a medical insurance?

Billy’s choices: 

1st level of protection: All Singaporeans can access to a subsidy of up to 80% of the total bill in acute public hospital wards. This applies to Billy if he chooses to be treated in a public hospital. His bill will be highly subsidized. However, he still needs to pay the remaining portion of the bill. Refer to 2nd level protection to find out how he foots the remaining bill. Another situation might also occur in public hospitals and that is the shortage of beds.

Thus you might not want to delay your treatment or surgery due to not having an option to seek treatment in a private hospital as the costs are much higher.

The 2nd level of protection: All Singaporeans has Medisave, a compulsory individual medical savings account which allows them to pay for their share of medical treatment without financial difficulty. This helps Billy to pay the remaining bill after subsidy. However, he may end up wiping off his Medisave. 

The 3rd level of protection: MediShield, a low cost catastrophic medical insurance scheme. However, for individual responsibility for one’s healthcare needs, the features of deductibles and co-payment means that patient still need to pay a portion of their hospital bill.

To help Billy solve his hospitalisation costs, he is advised to upgrade his medishield with an integrated private insurance.

The diagram shows what MediShield covers and how an integrated private insurance helps.

A hospital bill is categorised into different portions. The shaded portion shows what MediShield covers. A patient will need to pay portions 1-6 of the bill. With an integrated private insurance, the bill may be full covered.



Verlin Tan (Financial Planner representing HSBC Insurance Singapore)
I specialize in wealth management. I take care of my clients’ 4 areas of wealth. Weath Protection-Insurance Planning, Wealth Accumulation-Retirement & education planning, Wealth Preservation-Tax Planning and Wealth Distribution-Will & Trust. My client base includes young adults, savvy investors and business owners. I strive to keep myself abreast with the industry to provide my clients and more people with knowledge & skills to improve their wealth portfolio. You can contact me at