UPDATE ON THE PRIVATISATION OF MEDISHIELD PLUS
	News Release by: JOINT CENTRAL PROVIDENT FUND BOARD AND MINISTRY OF HEALTH PRESS STATEMENT 13 Aug 2005 --
	AWARD OF THE MEDISHIELD PLUS TENDER As part of the MediShield reform, it was announced earlier that the CPF Board would privatize its MediShield Plus Plans.
	The CPF Board called a tender for the sale of its MediShield Plus portfolio in June 2005. A total of 3 bids were received, from Aviva, Great Eastern Life and NTUC Income.
	The tender was evaluated by a committee chaired by Mr. Gerard Ee. The composition of the evaluation committee is given in Annex A. NTUC Income has been awarded the tender as it offers the lowest premiums for all age bands for better benefits and is able to meet all the terms and conditions specified in the tender. These terms include guaranteeing that the premiums will not be increased for at least three years, and that all existing policyholders will continue to be covered regardless of their medical conditions. MediShield Plus Plan A and Plan B will be transferred to NTUC Income in October 2005 and will be renamed as IncomeShield Plan MA and Plan MB respectively thereafter. The privatization will benefit all existing MediShield Plus policyholders, numbering some 350,000. They will enjoy enhanced benefits at the same or lower premiums, depending on their age groups. The CPF Board will soon inform all the existing MediShield Plus policyholders of the changes. Enhanced Benefits At Lower/Same Premiums All existing policyholders will benefit from the privatization of MediShield Plus. First, they will enjoy better benefits including higher annual and lifetime claim limits and lower co-payment at the same or lower premiums. Elderly IncomeShield Plan MA policyholders stand to gain the most, with savings in annual premiums amounting to a few hundred dollars a year. Second, they can continue to enjoy coverage beyond the age of 80 if they wish to, as they will be given the option of a lifetime coverage under IncomeShield Plan B or C when they reach the age of 80, without the need for medical underwriting. Annex B compares the new benefits and premiums offered by NTUC Income with the current MediShield Plus benefits and premiums. For more information on the Privatisation of MediShield Plus, click here.
	ANNEX A:
	Composition of the Tender Evaluation Committee Chairman Mr Gerard Ee, Chairman of the National Council of Social Services Members Mr Koh Juan Kiat, Executive Director, Singapore National Employers’ Federation Mr Law Song Keng, Board Member at CPF Board Mr Teoh See Leong, Director (Collections and Recovery Division), CPF Board Mr Lawrence Wong, Director (Special Project), MOH Mr Tey Chee Keong, Deputy Director (Healthcare), CPF Board
	ANNEX B:
	Revised Benefits and Premiums Table 1: Plan A Parameters MediShield Plus A IncomeShield Plan MA Claim Limits: Lifetime Annual Daily ward and treatment charges       - Normal Ward       - ICU Surgical Procedures Surgical Implants $300,000 $100,000 $625 per day $1,000 per day $480 ~ $7,200 $3,500 $550,000 $110,000 $690 per day $1,100 per day $500 ~ $7,800 $4,000 Co-insurance: 20% 10% Deductible: (per policy year) $4,000 Private Hospital wards: $4,000 Class A wards: $4,000 Class B1 wards: $2,500 Class B2 wards: $1,500 Class C wards: $1,000 Premiums: Age: 0 – 30 31 – 40 41 – 50 51 – 60 61 – 65 66 – 70 71 – 73 74 – 75 76 – 78 79 – 80 Above 80 60 90 180 300 480 660 1020 1200 1600 1950 No coverage 55 80 153 240 370 495 745 876 1136 1385 Policyholders will have the option of lifetime coverage under IncomeShield Plan B or C Revised Benefits and Premiums Table 2: Plan B Parameters MediShield Plus B IncomeShield Plan MB Claim Limits: Lifetime Annual Daily ward and treatment charges       - Normal Ward       - ICU Surgical Procedures Surgical Implants $225,000 $75,000 $375 per day $625 per day $360 ~ $6,400 $2,500 $375,000 $85,000 $385 per day $640 per day $370 ~ $6,600 $2,800 Co-insurance: 20% 10% Deductible: (per policy year) $2,500 Private Hospital wards: $2,500 Class A and B1 wards: $2,500 Class B2: $1,500 Class C: $1,000 Premiums: Age: 0 – 30 31 – 40 41 – 50 51 – 60 61 – 65 66 – 70 71 – 73 74 – 75 76 – 78 79 – 80 Above 80 $36 $54 $108 $180 $288 $396 $612 $720 $960 $1,170 No coverage $36 $54 $108 $180 $288 $384 $575 $677 $874 $1,065 Policyholders will have the option of lifetime coverage under IncomeShield Plan C