CPF Medishield

CPF MediShield is being revised. It will cover a wider range of treatment and cover an average of 80% of hospital bills (increased from the current 60%). The premium will be increased by an average of $10 a month.

For most people, CPF Medishield (after the revision) is better than the Shield plans offered by private insurers for the following reasons:

1. Saving of about 15% of premium in marketing expenses (incurred by private insurers).
2. Saving of about 15% to 25% in the profit margin of private insurers

The potential saving in insuring with CPF Medishield could be 30% to 40% for the same type of coverage.

As most of the medical expenses will be incurred when one gets old, and the cost is likely to escalate due to age and inflation, it is important to choose a cost effective medical insurance plan, such as Medishield.