Is CPF really that bad? (Part 3 – Healthcare)
What does Medisave do?
“Medisave is a national savings scheme which helps CPF members save for future medical expenses, especially after retirement.” – CPF.GOV.SG
What can you do with your Medisave account?
Use it at all public healthcare institutions, and approved private hospital and medical institution – Click here if you want to know which specific one
Benefits of Medisave?
- Use it for yourselves (of course) and for you family members
- For all medical issues
- “The Medisave Withdrawal Limits are generally enough to pay for the charges incurred by a patient staying in a Class B2/C ward in a restructured hospital. If you decide to stay in a higher class ward or a private hospital, you may have to pay part of the bill in cash. It is therefore important to choose a ward or medical institution that you can afford. For a rough estimate on the medical charges, you can check the hospital bill sizes by medical condition / procedure at the Ministry of Health (MOH) website. If you know your estimated medical charges, you may use our Medisave/MediShield Life Calculator to estimate how much you can claim.” – Cpf.gov.sg
Cons about Medisave?
- There are limits on medical issues
- For example; outpatient scan of $600 per year for cancer treatment
- How to go about it?
- use your family’s member
- There’s a cap amount of $52,000 called basic healthcare sum (BHS)
Still think Medisave is not enough for your future healthcare needs?
Medishield Life was created in 2015 to replace Medishield. ” It is a basic health insurance plan, administered by the Central Provident Fund (CPF) Board, which helps to pay for large hospital bills and selected costly outpatient treatments, such as dialysis and chemotherapy for cancer. ” – CPF
Do you have to apply for it?
No! it is a replacement of the old Medishield plan that everyone has.
Why should you max out your MA account?
Similar to your SA, it gives the same interest rate and any amount above the BHS will go into you your other CPF A/C. Additionally, the amount for BHS rose by 4.4% within a year, which means you require a higher amount of $$ in your MA when you’re older. Remember compounding now and at a larger number beats “most of the future” compounding.
All in all, the money in your medisave account acts like a full basic healthcare insurance plan which can be used mainly everywhere in Singapore. If you need better care, an insurance plan is needed to cater to that need.
The question to you is whether it is suffice? How knowing this can plan your insurance needs?