MEDISHIELD is a low-cost catastrophic illness insurance scheme which will cover up to 80 per cent of a large medical bill at the Class B2/C level.

The scheme, introduced in 1990, works on a co-payment and deductible system.

Still, a very large medical bill can easily wipe out a patient's Medisave balance. This is why, to enhance coverage, people can buy Integrated Shield Plans that are sold by private insurance companies.

Ms Adniah, who bought such a product, can begin making claims against her insurer only after her bill has reached $3,000 for the year, said Mr Sam Tan, president of the Singapore Insurance Institute.

After that, she still has to co-pay with her insurer. If the co-payment arrangement is 80/20, the insurer will pay 80 per cent of the amount in excess of $3,000, while

Ms Adniah will pay 20 per cent.

If Miss Adniah's medical bill is $8,000, she will have to pay the first $3,000 herself. The insurer will then pay 80 per cent of the remaining $5,000, that is $4,000. That means she will have to pay $4,000 in all.

Mr Tan said: 'It can't be helped. This is quite standard, because of the attractive premiums that they are paying.'

Mr Simon Newman, managing director of Aviva Singapore, said: 'Claimable limits, deductibles and co-insurance are features to help keep plans affordable... Policyholders who want additional coverage may purchase riders to complement their Shield policies.'

To get this benefit, said Mr Tan, policyholders pay an additional 20 per cent on their premiums.

He added: 'However, now that Ms Adniah has already been diagnosed with the disease, this option is no longer available to her.

'People who are caught in this situation can opt for a C class ward to minimise their expenses.'

For those who still cannot pay, there is Medifund, set up by the Government as a safety net to help poor Singaporeans.

This article was first published in The New Paper.