Understanding the terms deductible, co-payment, and coinsurance is essential for managing your health insurance effectively. These components determine your personal medical costs and influence your overall healthcare expenses. Let’s break down each term and see how they apply within Singapore’s healthcare system.

Learn more: Health Insurance In Singapore

Browse Health Screening Packages in 365mall

Explore Preferred Medical Centres

Find a Doctor

Deductible

A deductible is the amount you pay for healthcare services before your insurance coverage begins. For example, if your plan has a SGD 2,000 deductible, you’ll pay the first SGD 2,000 of your medical bills. After meeting this deductible, your insurer starts covering a portion of your expenses.

In Singapore, MediShield Life—the national health insurance scheme—includes deductibles that vary based on age and ward class. For example, the deductible for a Class B2/C ward ranges from SGD 1,500 to SGD 3,000, depending on the patient’s age. This means you’ll need to cover these initial costs before MediShield Life contributes to your hospital bills. 

Source: Ministry of Health

Co-Payment

Co-payment, or copayment, is a fixed fee you pay for specific medical services or medications. For example, you might pay SGD 20 for a general practitioner visit, while your insurance covers the rest. Co-payments are straightforward and help manage routine medical expenses.

In Singapore, co-payments are common in Integrated Shield Plans offered by private insurers. These plans supplement MediShield Life and often include co-payments for outpatient visits or specialist consultations. The exact co-payment amount depends on your chosen plan and the services rendered.

Coinsurance

Coinsurance is the percentage of medical costs you share with your insurer after meeting your deductible. For instance, with a 10% coinsurance, you pay 10% of the remaining bill, and your insurer covers 90%. If you have a SGD 1,000 bill post-deductible, you’d pay SGD 100, and your insurer would pay SGD 900.

Under MediShield Life, coinsurance rates vary from 10% to 3%, decreasing as the bill amount increases. This structure ensures that while patients share in the cost, the burden lessens with higher bills.

Applying These Concepts in Singapore

Consider a hospitalization scenario with a SGD 10,000 bill in a Class B2 ward:

1. Deductible: Assume a SGD 2,000 deductible. You pay this amount first.
2. Remaining Bill: SGD 10,000 – SGD 2,000 = SGD 8,000.
3. Coinsurance: With a 10% coinsurance rate, you’d pay 10% of SGD 8,000 = SGD 800.
4. Total Out-of-Pocket: SGD 2,000 (deductible) + SGD 800 (coinsurance) = SGD 2,800.

MediShield Life would cover the remaining SGD 7,200.