Thursday, 23 June 2016

The cost of hospitalization!

Everyone knows that healthcare in Singapore can be very costly, but how many of us are actually adequately covered when we are hospitalized? When was the last time you reviewed your hospitalization policy?

When I was still young, my mother had already bought plenty of insurance for me at that time. Since then she has been paying the insurance premium in my behalf. 2 years ago, I was interested in the area after a chance encounter at a seminar and took a look at the plans. That’s when I realized that I was covered with a whole life insurance, hospitalization and an endowment plan among other plans. After further review, I realized that some of the policies did not make sense and had to go. I had meet up sessions with some of my insurance friends and learnt about the different products in the market from them.

Hospitalization is an important item which one must definitely have. I say this because I work in the healthcare industry and I have seen how financial issues can affect the lives of patients and their family. An admission to a general B1 ward in a government restructured hospital can easily cost $198 - $240 per day (obtained from various major hospital websites) and this amount only puts your name on the bed and does not include any treatment or medication fees. This means that if you have to stay in the hospital for 7 days, it would translate to $1386 - $1680 just for the bed.


The government subsidies the hospitalization of Singaporeans based on their ward choice and monthly income.

Hospital inpatient
Subsidy
Class A (own room, air-con, TV)
0%
Class B1 (4 beds, air-con, TV)
20%
Class B2 (6 beds)
65% - 50%   
Class C (8 - 10 beds)
80% - 65%

Source: https://www.moh.gov.sg/content/moh_web/home/pressRoom/Current_Issues/2014/s-3ms-resources/hospitalisation-and-day-surgery.html

MOH releases the average hospital inpatient bill size for patients of either surgical or medical disciplines on their website and I didn’t know about it until I went on the topic a few days ago. The numbers have been extracted here for easy comparison.

For B1 patients who want more space in the room and is often air conditioned.
For patients who are admitted under Surgical Disciplines (meaning disciplines which may or may not require surgery)
Room Type
Class B1 (3-4-bedded)
Hospitals*
Average Per Day ($)
Average Total Bill ($)
Total Bill at 90th Percentile
Total Bill at 95th Percentile
AH
1,220
4,400
9,670
15,320
CGH
1,250
5,559
12,007
15,245
KTPH
1,554
6,367
13,921
17,388
KKH
1,988
4,563
8,986
11,158
NUH
1,631
7,070
15,919
22,527
SGH
2,425
9,164
19,128
24,402
TTSH
1,527
8,893
18,164
24,027
NHC
2,710
22,729
37,045
46,901


For patients who are admitted under Medical Disciplines (meaning disciplines which does not require surgery)
Room Type
Class B1 (3-4-bedded)
Hospitals*
Average Per Day ($)
Average Total Bill ($)
Total Bill at 90th Percentile
Total Bill at 95th Percentile
AH
728
3,189
5,988
8,988
CGH
874
4,960
11,023
16,162
KTPH
896
4,295
10,009
13,817
KKH
621
1,386
2,262
3,275
NUH
1,011
4,494
10,755
16,559
SGH
1,065
5,272
10,088
17,334
TTSH
835
7,690
17,516
26,261
NHC
3,541
11,395
27,044
32,307

And for B2 patients who is willing to sacrifice space to enjoy more government subsidies…

For patients who are admitted under Surgical Disciplines (meaning disciplines which may or may not require surgery)
Room Type
Class B2 (6-10-bedded)
Hospitals*
Average Per Day ($)
Average Total Bill ($)
Total Bill at 90th Percentile
Total Bill at 95th Percentile
AH
496
1,773
3,984
5,940
CGH
490
2,206
4,761
6,422
KTPH
673
2,483
5,251
6,992
KKH
744
1,829
3,837
5,045
NUH
693
2,760
5,522
8,298
SGH
628
3,334
6,726
9,671
TTSH
593
2,583
5,473
7,737
NHC
780
6,953
11,509
14,395

For patients who are admitted under Medical Disciplines (meaning disciplines which does not require surgery)
Room Type
Class B2 (6-10-bedded)
Hospitals*
Average Per Day ($)
Average Total Bill ($)
Total Bill at 90th Percentile
Total Bill at 95th Percentile
AH
276
1,458
2,811
4,547
CGH
308
2,077
4,328
5,918
KTPH
378
1,954
4,116
6,149
KKH
356
903
1,408
2,348
NUH
433
2,246
4,590
6,639
SGH
419
2,383
4,673
7,254
TTSH
354
2,262
5,100
7,704
NHC
986
3,491
7,956
10,324

Source for MOH Surgical discipline is here and Medical discipline is here.
Average per day = total amount of inpatient bills/total number of days stayed in hospital (day surgery bills are not included

In the healthcare industry, it does not hurt to always be prepared for the worst case scenario. Is it worth paying the annual premiums of your hospitalization plan or would you risk having to fork out tens of thousands of dollars just to save a few bucks when illness or accidents hit?


Investing Wolf 

Disclaimer: This is not a recommendation to buy or sell any mentioned stocks or securities in this blog. 


2 comments:

  1. Life is tough when we have a choice to make and evaluate the trade off. Life is better when money is abundant and making an obvious decision without thinking so hard. Work harder, Save more, Invest harder, Insurance more and self-insured fund even better.

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    Replies
    1. Agreed CW8888... No matter how well we allocate our financial health, i believe most of us do not have tens of thousands sitting in the medical expenses column waiting to be used if we are hospitalized.

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