Health insurance in Singapore is built in layers. The base is MediShield Life, which every citizen and Permanent Resident has for life and which pays up to S$200,000 a policy year towards large hospital bills. Everything else, from Integrated Shield Plans to critical illness cover, is an optional layer with a different job.
Most confusion comes from expecting one layer to do another’s work. This guide sets out what each pays for, and what it leaves.
The Layers of Health Insurance in Singapore
MoneySense lists the main types. Here they are by what they pay.
| Layer | What it pays | Compulsory? | Paid with |
|---|---|---|---|
| MediShield Life | Large hospital bills and selected outpatient treatment, to claim limits | Yes, for citizens and PRs | MediSave |
| Integrated Shield Plan | Bills at higher ward classes or private hospitals | No | MediSave up to a limit, then cash |
| IP rider | Part of the co-insurance on an IP claim | No | Cash |
| Critical illness | A lump sum on diagnosis | No | Cash |
| Disability income | Monthly income if you cannot work | No | Cash |
| CareShield Life | Monthly cash for life on severe disability | Yes, if born 1980 or later | MediSave |
| Hospital cash | A fixed sum per day in hospital | No | Cash |
MediSave is not insurance. It is your own savings, used to pay premiums and your share of bills. See what MediSave can be used for.
Layer One: MediShield Life
MediShield Life is national health insurance run by CPF Board. It covers pre-existing conditions and never expires.
Key figures from MOH’s benefits table, for admissions and treatment on or after 1 June 2026:
- Policy-year claim limit: $200,000, with no lifetime limit.
- Normal ward: up to $830 a day. Intensive care: up to $5,140 a day.
- Kidney dialysis: up to $1,750 a month.
- Outpatient cancer drug treatment: $200 to $12,800 a month, depending on the drug.
You pay a deductible once every policy year, then co-insurance of 10% falling to 3% as the claimable amount rises, CPF Board says. MediSave can pay both, within its withdrawal limits.
Two limits to understand:
- It is sized for Class B2 and C wards. For higher wards and private hospitals, the bill is pro-rated before the claim is computed, so MediShield Life pays a smaller share.
- It has exclusions. Overseas medical treatment is one. So are ambulance fees and most maternity charges.
Premiums are covered in our article on MediShield Life premiums and MediSave.
Layer Two: Integrated Shield Plans and Riders
An Integrated Shield Plan (IP) adds a private insurance component on top of MediShield Life for Class B1 and A wards or private hospitals. MOH lists seven insurers: AIA, Great Eastern, HSBC Life, Income Insurance, Prudential, Raffles Health Insurance and Singlife.
MediSave pays the private portion up to $300 a year at age 40 and below, $600 from 41 to 70, and $900 from 71. The rest is cash.
A rider lowers your share of the bill. Since 1 April 2026, MOH requires that new riders leave you paying the minimum deductible and at least 5% of the bill above it, with the yearly co-payment capped at no less than $6,000 for eligible claims.
How to choose between tiers and insurers is in our article on comparing Integrated Shield Plans.
Layer Three: Cover That Pays You, Not the Hospital
Hospital plans stop at the hospital door. Three other products deal with what happens to your income.
- Critical illness insurance pays a lump sum on diagnosis of a listed illness. MoneySense’s Basic Financial Planning Guide gives a rule of thumb of 4 times annual income. See our critical illness insurance guide.
- Disability income insurance replaces part of your salary if illness or injury stops you working. See how to compare disability income insurance.
- CareShield Life pays monthly cash for life if you become severely disabled: $689 a month for a claim made in 2026. It is compulsory for those born in 1980 or later. Our nursing home cost explainer shows how far it goes.
A Worked Example: Who Pays What
An illustrative 45-year-old has a hospital stay with a $20,000 bill. The split depends on the ward and the layers held. The figures below are simplified and for illustration only.
Class B2 ward, MediShield Life only. The bill is after government subsidy. The patient pays the deductible and co-insurance on the claimable amount, largely from MediSave. MediShield Life pays the rest, within its limits.
Private hospital, private-hospital IP with a new-style rider, panel doctor. The patient pays the $3,500 minimum deductible plus 5% of the remaining $16,500, or $825. Total: $4,325, in cash or MediSave within limits. The IP pays the remainder, within its limits.
Private hospital, MediShield Life only. The bill is pro-rated first, so MediShield Life pays only a small share and the patient pays most of the $20,000.
The pattern: insurance does not remove the bill. It caps your share, and the cap depends on matching the ward you use to the plan you hold.
The short version: MediShield Life is the compulsory base and covers large bills in subsidised wards. An Integrated Shield Plan extends that to higher wards and private hospitals. Critical illness, disability income and CareShield Life pay you cash, which hospital plans never do.
Questions MoneySense Suggests Asking
Before buying any health policy, MoneySense suggests asking, among other things:
- What limitations, exclusions, deductibles, co-insurance, benefit limits and waiting periods apply?
- Is the premium fixed, or can the insurer change it yearly?
- Will the policy renew automatically, and when can it end?
- How will a claim affect future premiums?
- Am I already covered for the same thing under another policy?
MoneySense’s health insurance page also advises not waiting until you stop working, or until a health issue appears, to arrange cover. An insurer may then exclude the condition.
Common Gaps to Check
- Relying only on employer cover. It may end with the job.
- A private hospital plan with no cash budget for the premium at 70.
- No cover for income. Many households have a rider on the hospital plan and nothing for lost salary.
- Parents. Check whether they are on CareShield Life or ElderShield.
- Time overseas. MediShield Life excludes overseas treatment. See international health insurance.
What To Do Next
- Log in to the CPF website and note your MediShield Life, IP and CareShield Life or ElderShield status.
- Write down which ward you would actually choose, then check that your plan matches.
- Use the protection gap calculator for the income side.
- Check your MediSave balance against the Basic Healthcare Sum.
- Injuries are a separate question from hospital bills; see what personal accident insurance covers, and its limits.
