Understanding your cancer insurance coverage is crucial since, according to Singapore Cancer Society, 1 in 4 people will develop cancer at some point in their lifetime and 44 people are diagnosed with cancer every day (Singapore Cancer Society).
Last April 1, 2023, the Integrated Shield Plans (IPs) has started some changes on their coverage plans. This is to follow the policy changes implemented by MediShield Life (MSHL) and MediSave last September 1, 2022, where only treatments that are listed on the Cancer Drug List (CDL) are covered.
Since spending on cancer drugs increased by 20% annually from 2016 to 2019, this is part of the Ministry of Health’s (MOH) commitment to lower the cost of cancer drug therapy and maintain premiums affordable in the long run.
Changes to Medi-Save’s Cancer Coverage
In the past, IPs often received their benefits “As Charged” for outpatient cancer treatments like chemotherapy, radiotherapy, and immunotherapy. IPs would pay for everything as long as the hospital ward you were admitted to was covered by your policy. Due to the structure, pharmaceutical companies had little reason to offer lower prices for less costly drug treatments.
According to the MOH, average procurement prices have dropped by 30% since the new strategy was announced in August 2021, and by as much as 65% for specific drugs. Over 200 medications have been approved by the Health Sciences Authority, and of those, more than 90% are now on the CDL.
This implies that individuals with cancer will have a better chance of affording effective and safe cancer medicine therapies.
1. Benefit of Cancer Drug Treatment
Your IP may only be used to claim CDL cancer medication treatments. Typically (depending on individual treatment restrictions), the coverage under IPs is set as a multiple of the MSHL limits.
Certain non-CDL cancer medications will be eligible for coverage under IP riders (up to a policy year limit). The LIA Non-CDL Classification Framework’s drug classes A through E are the only ones that are covered by riders for non-CDL treatments. There is no coverage for Class F treatments. For non-CDL therapies, certain plans may charge a co-payment of up to 20%.
2. Advantages of Cancer Drug Services
Treatment-related services (including those for drugs that aren’t included on the CDL) for cancer patients. The maximum amount of IP coverage will often be based on the MSHL limits.
Services offered include diagnostic imaging, laboratory testing, treatment planning and delivery, medication for symptom management, and transfusions, among other things.
How does cancer treatment affect you?
1) I am covered by MediShield Life and am now receiving treatment on CDL / not on CDL.
You’ll get some extra help paying for the care they’re getting right now. You shouldn’t expect to spend any more money than you did before. For further information, please contact the relevant Public Healthcare Institutions.
2. I have an IP and my treatment is under CDL.
Beyond April 1, 2023, all IP insurers have promised to assist IP policyholders who are receiving cancer drugs through a transitional period.
If you are undergoing private cancer treatment and require financial help, you may ask to be referred directly to subsidized specialist care at public healthcare institutions. There, your treatment plan will be evaluated and you will be able to seek for further financial assistance.
3. I am on several treatments for cancer.
For patients who require more than one cancer drug treatment from the CDL in a given month, claims can be made up to the higher of the MediShield Life, MediSave, or IP claim limitations applicable for the individual treatments, provided that they are prescribed for one of the CDL-specified reasons.
However, even if the individual therapies are specified on the CDL, none of the treatments will be claimable if several cancer treatments are administered but not according to the indications on the CDL.
4. I just recently learned that I have cancer.
Treatments on the CDL have shown clinical success and are more cost-effective, so you and your oncologist should explore these options first.
Do you feel you have adequate coverage?
A cancer diagnosis is devastating news for anyone. Possible outcomes include long-term unemployment.
The average period it takes for a critical disease to heal or for cancer to go into remission is five years, so that’s how long you should plan on having your gross income covered by your critical illness insurance policy.
The following are some things to think about if you want better cancer insurance:
1. Adding a rider to your IP that covers off-label uses of cancer drugs for outpatients. The rider can only be paid in cash.
2. Increasing your critical illness insurance, which provides a one-time cash payment in the event of a critical illness diagnosis such as cancer. For instance, a critical illness insurance insures you against the high costs of cancer treatment at every stage and can cover up to 37 critical illnesses.
Having adequate insurance can alleviate stress and make life easier for those left behind financially.
Get going, already!
Get in touch with a Financial Advisor right away to get advice on improving your financial situation and making plans for the future.