Salam,

You may have seen the recent news about an insurer suspending "pre-authorisation" for treatments at Mount Elizabeth hospitals. This has understandably caused some confusion and concern.

As your financial advisor, I want to break down what this means for you, how it might affect your family's financial well-being, and what steps you should take to ensure you can continue to "Live Worry-Free."

What is Pre-Authorisation and Why Does It Matter?

Think of pre-authorisation as getting a confirmation slip from your insurer before you undergo a planned medical procedure. It confirms that your Integrated Shield Plan (IP) covers the treatment and, crucially, the estimated cost. This gives you peace of mind, knowing that your bill will be taken care of, allowing you to focus on your recovery.

Without it, you face a degree of uncertainty. You might have to pay the hospital bill out of your own pocket first and then seek reimbursement from your insurer, without knowing for sure if the full amount will be approved.

How This News Might Affect You

This recent development, where a major insurer has paused this service for two private hospitals, highlights a key risk in our healthcare journey: administrative and policy changes by insurers can happen, and they can impact your access to "cashless" services.

The potential impacts on you and your family include:

1.  Financial Uncertainty: Without pre-authorisation, you lose the upfront assurance of what your final out-of-pocket cost will be.

2.  Cash Flow Strain: You might need to have significant cash or credit available to settle the hospital bill first before your claim is processed and reimbursed. This can be a major burden, especially if the bill is large.

3.  Increased Stress: The last thing you need when facing a medical procedure is to worry about whether your bills will be covered. This administrative change can add unnecessary stress to an already difficult time.

While the insurer has stated that policy coverage remains unchanged, the process of claiming has become more cumbersome for policyholders using these specific hospitals.

What You Should Do: The Steps to Take Now

This news is a timely reminder to be proactive about your healthcare and financial planning. Here are some simple steps you can take, aligned with our Modern Muslim Finance Method:

1.  Know Your Insurer's Panel: Before any planned hospitalisation, check if the hospital and doctor are on your insurer's panel. Insurers often have special arrangements, like pre-authorisation, with their panel providers.

2.  Always Contact Your Insurer First: For any planned procedure, regardless of the hospital, the first step should always be to contact your insurer or your financial advisor. Ask them to confirm the process for claims and whether a Letter of Guarantee (LOG) or pre-authorisation is available.

3.  Understand the Difference:

    * A Letter of Guarantee (LOG) is an assurance to the hospital that the insurer will cover a portion of the bill, which helps waive the upfront cash deposit.

    * Pre-authorisation goes a step further by confirming the medical necessity and cost of the treatment before it happens.

4.  Review Your Protection Portfolio: Your Integrated Shield Plan is a cornerstone of your financial safety net. Is it still the right one for your needs? Do you have a rider? Do you understand its benefits and limitations?

Let's Review Your Plan Together

This development shows that the healthcare landscape is constantly changing. Relying on an old plan without reviewing it can lead to unexpected and costly surprises.

Your peace of mind is my priority. Let's not wait until an emergency happens. I urge you to schedule a complimentary review of your protection portfolio with me. We will go through the "Insurance" component of my "5 I's of Islamic Finance" framework to:

* Assess your current coverage to ensure it aligns with your preferences.

* Identify any potential gaps in your safety net.

* Clarify the exact procedures for making a claim with your specific insurer.

This will ensure you and your loved ones have the clarity and confidence you need to navigate any healthcare challenges, Insha'Allah.

Schedule a Consultation with Me

Spend Guilt-Free, Live Worry-Free, and let's ensure your financial plan is ready for whatever comes next.

*****

Important: The information and opinions in this post are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek independent financial advice customised to their specific financial objectives, situations & needs.

This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.