GST in Medical Bill not claimable?

[Dennis Ng]

below is a question posted by someone at another forum about whether GST in Medical Bill is claimable or not. I've attached her quesion and my reply below for everyone's easy reference:

Originally posted by Nurudilu
My company has a hospitalization insurance with Aviva. When I got back the refund, I got all the amount back less the gst. My colleague who was processing the claim told me that the gst part of the bill is not claimable.

I decided to check with another insurance company, NTUC Income, about the hospitalization insurance and they also told me that the gst portion of the bill was not claimable. Anyone knows whether this is a industry standard.

What if my bill was $200,000 and assuming I have a NTUC enhanced income shield plan with a rider that pays the deductibles and co-insurance. Imagine my surprise if I still have to pay $14,000 for my bill (assume gst 7%). What if next time gst goes to double digits like in some countries.

Why can't the insurance company pay me back the gst as well. I don't mind paying higher premium to insure away this gst bill payment risk. Afterall, this is the whole point of buying insurance.

My comments:
from what I understand, as you have found out yourself, typically, that the GST of medical bill is not claimable.

However, as I understand, Great Eastern Supreme Health plan (shield plan) DOES cover GST payment for medical bill. Thus, this is one difference between Great Eastern and other insurers. Thus, if you have no medical conditions, you can consider switching your "shield" plan from NTUC Income to Great Eastern.

You can feedback your comments to the insurer and the press. I think as GST gets higher, (going to be 7% soon), it can be quite a burden for consumers to bear it themselves. I'm sure consumers would not mind paying a slightly higher premium to get GST of medical bill covered as well.

[candy_chia]

My current Aviva Myshield under plan 1 does not come with a rider that pays the deductibles and co-insurance.

It is worthwhile to add a rider to the my current policy? Do Aviva has such a rider?

[bemoneysavvy]

Aviva has 2 riders:

Option A: covers the co-insurance (and some other little benefits)
Option B: covers the deductible portion

If you have employer's cover, there'll be some overlap at the moment. Advantage is that you "lock-in" your current health status.

Premiums for riders are payable in cash and will increase according to age, so you have to take into account future premium affordability as well.

My current Aviva Myshield under plan 1 does not come with a rider that pays the deductibles and co-insurance.

It is worthwhile to add a rider to the my current policy? Do Aviva has such a rider?

[woonty]

Aviva has 2 riders:

Option A: covers the co-insurance (and some other little benefits)
Option B: covers the deductible portion

If you have employer's cover, there'll be some overlap at the moment. Advantage is that you "lock-in" your current health status.

Premiums for riders are payable in cash and will increase according to age, so you have to take into account future premium affordability as well.

My current Aviva Myshield under plan 1 does not come with a rider that pays the deductibles and co-insurance.

It is worthwhile to add a rider to the my current policy? Do Aviva has such a rider?

I like the term you coined "lock-in" your current health status

Worst come to worst, can always downgrade the plan in future but hope need not


woonty

[Dennis Ng]

Aviva has 2 riders:

Option A: covers the co-insurance (and some other little benefits)
Option B: covers the deductible portion

If you have employer's cover, there'll be some overlap at the moment. Advantage is that you "lock-in" your current health status.

Premiums for riders are payable in cash and will increase according to age, so you have to take into account future premium affordability as well.

My current Aviva Myshield under plan 1 does not come with a rider that pays the deductibles and co-insurance.

It is worthwhile to add a rider to the my current policy? Do Aviva has such a rider?

I like the term you coined "lock-in" your current health status

Worst come to worst, can always downgrade the plan in future but hope need not


woonty

yes, it is always better to lock in one's health status and get insured on a Medical Insurance plan that includes Private Hospital Treatment and as charged, (Highest Plan)....then later if you want, can always downgrade the plan...

But if you're insured with a lower plan and decide to upgrade, most of the times cannot becos you only want to upgrade becos you have some medical conditions and realised the existing plan's coverage is insufficient.

Money cannot buy Insurance. Only Money plus Health can buy Insurance. Always remember that.

[candy_chia]

Based on the website of moh:

http://www.moh.gov.sg/mohcorp/uploadedF ... le%204.pdf

Annual premium of Aviva Plan 1 is higher than the plans offered by other insurance companies, but notice that only Aviva has a cap on the co-insurance up to maximum of $25,500 yearly

Aviva has 2 riders:

Option A: covers the co-insurance (and some other little benefits)
Option B: covers the deductible portion

If you have employer's cover, there'll be some overlap at the moment. Advantage is that you "lock-in" your current health status.

Premiums for riders are payable in cash and will increase according to age, so you have to take into account future premium affordability as well.

My current Aviva Myshield under plan 1 does not come with a rider that pays the deductibles and co-insurance.

It is worthwhile to add a rider to the my current policy? Do Aviva has such a rider?

[bemoneysavvy]

Cindy,

In calculating the premiums, it's also advisable to add up ALL the premiums till say age 85 for a fair comparison. Some companies purposely price the younger ages cheaper, but "lock" you in, in the later years.

Drop me a PM if you wish a clearer understanding.