6th Dec 2016

Lorna Tan from Straits Times dropped a bombshell today when she published an article that AIA will be increasing the premium of HealthShield Gold Max A.

Why is this a bombshell? Because I came to know about it through a client before AIA sent out a memo in the evening. Thanks Lorna! AIA, we need to talk about release of info.

I have speculated that AIA & GE will not increase the premiums of HealthShield & Supreme Health plans respectively because both companies’ IP portfolio are still profitable. Looks like I’m wrong!

However, unlike Aviva, Prudential & NTUC Income, AIA has increased price due to a whopping enhancement in benefits. This is something I predicted way back when I published my article about the future of Integrated (Shield) plans.

* There is a caveat. These improvements are only applicable to AIA panel specialists & public hospitals. If your favourite Private Surgeon isn’t on the list, then the old limits still applies. AIA is calling these doctors who don’t overcharge, “AIA Quality Healthcare Partners.” *

Starting from Jan 2017, you can click on this link to see which Specialist clinics are on the list to enjoy the following enhancements.

HealthShield Gold Max A

The key improvements in HealthShield Gold Max A are as follows:

  1. Pre-hospitalisation increase from 100 days to 13 months *
  2. Post-hospitalisation increase from 100 days to 13 months *
  3. Yearly treatment limit increased from $600,000 to $2M *
  4. Postpartum Haemorrhage requiring Hysterectomy covered

These enhancements will kick in on 25th Jan 2017 regardless of your policy date. No pro-rated premium will be collected. You simply pay the new premium on the renewal date after 25th Jan 2017. The updated premium analysis is here.

HealthShield Gold Max B

If you’re currently insured under Max B, the premium remains the same and you get an extra benefit for free!

Postpartum Haemorrhage requiring Hysterectomy is covered. Of course, this only applies to potential mothers but it’s better than nothing!

As with Max A, these enhancements will kick in on 25th Jan 2017 regardless of your policy date.

HealthShield Gold Max C

If you’re currently insured under Max C, the premium remains the same and you can continue to renew as per normal.

However, after 25th Jan 2017, AIA will no longer accept any new applications or downgrades to Max C. This is because Max C was from a bygone period and it longer makes any sense in the current Healthcare environment except to cater for the elderly insured who will pay a lower premium compared to the replacement plan.

And that replacement plan is the HealthShield Gold Max B Lite!

Think of Max B Lite like a Max B with “As charged” benefits, but only allows you to stay in a 4-bedded B1 ward in a public hospital.

AIA hasn’t publish the premium for this plan yet. When they do, I will update this post or do a separate cost/benefit analysis between Max B Lite & Max C.

Standard Plan

You know what? I don’t really want to talk about this.

Conclusion

Even though I was wrong about AIA not increasing premium, I’m happy they did because many of my clients who were discharged always worry about post-hospital expenses.

AXA did the right thing when they launched the 365 days post-hospitalisation benefits in AXA Shield because it was a much sought-after benefits from my clients as well.

Obviously, a huge increase in BOTH Pre & Post-hospitalisation benefits from 100 days to almost 400 days will result in an increase in premium. The group most impacted by this is the 41-50 age group where the premium jumps 36%. Fortunately, the total premium still falls within the AWL so no cash payment is needed until age 51.

For the above 51 group, the increases is between 25-30% while the younger group increases very little.

Max A Premium Analysis

The first chart is for Singaporeans & PRs including foreigners who are dependents. The premium is paid from the policy owner’s MediSave. If the premium exceeds the Additional Withdrawal Limits, the balanced must be paid in cash annually.

The second chart is also for Singaporeans & PRs including foreigners who are dependents, but this time, the premium is fully paid in cash either annually or monthly.

The last chart is for Foreigners who are not a dependent of a Singapore or PR and is here for work or study. A valid pass is required but note that Work Permit holders are not eligible to apply for HealthShield Gold Max A for Foreigners.

Age Next Birthday AIA HealthShield Gold Max A [S$ and inclusive of 7% GST]
MediShield Life Premiums (Unchanged) Additional Private Insurance Coverage Premiums
Before 25 January 2017 From 25 January 2017 Increase
(%)
Increase
($)
Cash after AWL ($)
1 – 20 130 150 155 3.33 5 0
21 – 25 195 166 166 0.00 0 0
26 – 30 195 166 196 18.07 30 0
31 – 35 310 236 260 10.17 24 0
36 – 40 310 236 271 14.83 35 0
41 – 50 435 419 570 36.04 151 0
51 – 55 630 680 884 30.00 204 284
56 – 60 630 802 1,043.00 30.05 241 443
61 – 65 755 1,212.00 1,515.00 25.00 303 915
66 – 70 815 1,710.00 2,138.00 25.03 428 1538
71 – 73 885 2,271.00 2,839.00 25.01 568 1939
74 – 75 975 2,516.00 3,145.00 25.00 629 2245
76 – 78 1,130.00 3,439.00 4,299.00 25.01 860 3399
79 – 80 1,175.00 3,834.00 4,793.00 25.01 959 3893
81 – 83 1,250.00 3,873.00 5,035.00 30.00 1162 4135
84 – 85 1,430.00 4,237.00 5,508.00 30.00 1271 4608
86 – 88 1,500.00 4,568.00 5,938.00 29.99 1370 5038
89 – 90 1,500.00 4,800.00 6,240.00 30.00 1440 5340
91 – 93 1,530.00 5,673.00 6,800.00 19.87 1127 5900
94 – 95 1,530.00 6,198.00 7,170.00 15.68 972 6270
96 – 98 1,530.00 6,552.00 7,650.00 16.76 1098 6750
99 – 100 1,530.00 7,083.00 7,730.00 9.13 647 6830

The above chart is for Singapore, PR, and their foreigner dependents when using Medisave.

Age Next Birthday AIA HealthShield Gold Max A – DP [S$ and inclusive of 7% GST]
Before 25 January 2017 From 25 January 2017
Annual Premium Monthly Premium Annual Premium Monthly Premium Annual Increase (%) Annual Increase ($)
1 – 20 280 24.4 285 24.8 1.79 5
21 – 25 361 31.4 361 31.4 0.00 0
26 – 30 361 31.4 391 34 8.31 30
31 – 35 546 47.5 570 49.6 4.40 24
36 – 40 546 47.5 581 50.5 6.41 35
41 – 50 854 74.3 1,005.00 87.4 17.68 151
51 – 55 1,310.00 114 1,514.00 131.7 15.57 204
56 – 60 1,432.00 124.6 1,673.00 145.6 16.83 241
61 – 65 1,967.00 171.1 2,270.00 197.5 15.40 303
66 – 70 2,525.00 219.7 2,953.00 256.9 16.95 428
71 – 73 3,156.00 274.6 3,724.00 324 18.00 568
74 – 75 3,491.00 303.7 4,120.00 358.4 18.02 629
76 – 78 4,569.00 397.5 5,429.00 472.3 18.82 860
79 – 80 5,009.00 435.8 5,968.00 519.2 19.15 959
81 – 83 5,123.00 445.7 6,285.00 546.8 22.68 1162
84 – 85 5,667.00 493 6,938.00 603.6 22.43 1271
86 – 88 6,068.00 527.9 7,438.00 647.1 22.58 1370
89 – 90 6,300.00 548.1 7,740.00 673.4 22.86 1440
91 – 93 7,203.00 626.7 8,330.00 724.7 15.65 1127
94 – 95 7,728.00 672.3 8,700.00 756.9 12.58 972
96 – 98 8,082.00 703.1 9,180.00 798.7 13.59 1098
99 – 100 8,613.00 749.3 9,260.00 805.6 7.51 647

The above chart is for Singapore, PR, and their foreigner dependents when using cash.

Age Next Birthday AIA HealthShield Gold Max A – NDP [S$ and inclusive of 7% GST]
Before 25 January 2017 From 25 January 2017
Annual Premium Monthly Premium Annual Premium Monthly Premium Annual Increase (%) Annual Increase ($)
1 – 20 294 25.6 299 26 1.70 5
21 – 25 372 32.4 379 33 1.88 7
26 – 30 372 32.4 411 35.8 10.48 39
31 – 35 559 48.6 599 52.1 7.16 40
36 – 40 559 48.6 610 53.1 9.12 51
41 – 50 895 77.9 1,055.00 91.8 17.88 160
51 – 55 1,345.00 117 1,590.00 138.3 18.22 245
56 – 60 1,485.00 129.2 1,757.00 152.9 18.32 272
61 – 65 2,050.00 178.4 2,384.00 207.4 16.29 334
66 – 70 2,553.00 222.1 3,101.00 269.8 21.46 548
71 – 73 3,295.00 286.7 3,910.00 340.2 18.66 615
74 – 75 3,529.00 307 4,326.00 376.4 22.58 797
76 – 78 4,780.00 415.9 5,700.00 495.9 19.25 920
79 – 80 5,240.00 455.9 6,266.00 545.1 19.58 1026
81 – 83 5,372.00 467.4 6,599.00 574.1 22.84 1227
84 – 85 5,935.00 516.3 7,285.00 633.8 22.75 1350
86 – 88 6,355.00 552.9 7,810.00 679.5 22.90 1455
89 – 90 6,600.00 574.2 8,127.00 707 23.14 1527
91 – 93 7,540.00 656 8,747.00 761 16.01 1207
94 – 95 8,095.00 704.3 9,135.00 794.7 12.85 1040
96 – 98 8,470.00 736.9 9,639.00 838.6 13.80 1169
99 – 100 9,025.00 785.2 9,723.00 845.9 7.73 698

The above chart is for Foreigners in Singapore with valid passes except Work Permit. Only annual or monthly cash payment is allowed.

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