IT’S TIME FOR SOME HEALTHY THINKING ABOUT INSURANCE

Only for Existing customers of PRUextra Premier

A new, fairer pricing approach for PRUextra Premier policyholders and options to help you save on your premiums without compromising on medical care.

Managing rising healthcare costs

A sharp increase in medical fees and claims, particularly from private hospitals, has led to a surge in the cost of private health insurance plans.

As a result, we are introducing a fairer pricing approach for PRUextra Premier, which rewards and encourages healthy living. Premiums will now be determined based on the claims you make at private and public hospitals.

We are also offering two other options: PRUextra Premier Saver and PRUextra Plus. These alternatives are designed to help you manage rising healthcare costs.


Source: Managing the cost of health insurance in Singapore. Health Insurance Task Force, Oct 2016 (Data – 2012 - 2014), Source: Prudential data,  Source: Report For Health Insurance Taskforce, October 2016

 

New, fairer pricing approach for PRUextra Premier policyholders

PRUextra Premier offers you first dollar coverage at private hospitals. In this new pricing approach, your future premiums will now be determined based on your claims experience in private and public hospitals.

Everyone starts at the lowest premium level

Your premium upon renewal this year will be Standard Level Premium, which is the lowest for your age band.

Moving forward, your premium level will be determined annually based on your claims experience at private and public hospitals during the Review Period. The first Review Period will be 10 months, starting from your upcoming policy renewal date*. Thereafter, each subsequent Review Period covers 12 months.

If you have made no claims in the past 3 years, you get immediate saving of 20%1 on Standard Level Premium. Going forward, if you have made no claims at private or public hospitals in the Review Period, you continue to enjoy PRUwell Reward, a 20%1 saving on your Standard Level Premium.

Furthermore, if you are an existing PRUextra Premier customer as at 30 April 2017 and you are diagnosed with a severe condition^ in the future, your premiums will not be subjected to the new pricing approach. This means you will only pay Standard Level Premium, regardless of the claims amount.

1 PRUwell Reward has been enhanced from 10% to 20% from 1 December 2017 onwards.
* Starting from 1 May 2017.
^ Conditions which are life-threatening or terminal


How your premiums can change in the future for PRUextra Premier

Hospital Claims payment made on PRUextra Premier during the Review Period Movement on premium levels (subject to minimum Standard Level Premium and maximum of Level 5)
Private Hospital S$1,000 and below Stay at the same level
Private Hospital Above S$1,000 to S$5,000 Move up two levels    ↑ 2 Levels
Private Hospital Above S$5,000 Move up four levels   ↑ 4 Levels
Public Hospital Any claims amount and no claims made at a private hospital Move down one level ↓ 1 Level
Private Hospital or
Public Hospital
No Claims Move down one level ↓ 1 Level


Note: Your Standard Level Premium is based on the revised premium which has been adjusted to reflect medical inflation.

If the life assured suffers from or is undergoing treatment for a chronic severe illness, he will not be moved to the new pricing approach of PRUextra Premier. Please refer to point 20 of the FAQ below for a list of chronic severe illnesses covered.

 

Stay healthy and receive PRUwell Reward

As part of the new pricing approach for PRUextra Premier, if you make no claims during the review period^, you will be rewarded with a 20%1 saving on your annual Standard Level Premium.

1PRUwell Reward has been enhanced from 10% to 20% from 1 December 2017 onwards.

 

Options to help you save on premiums without compromising on medical care

PRUextra Premier Saver

  • For private hospital services, you pay the first S$1,000 of the deductible plus 5% of the remaining total bill after deducting the deductible portion.
  • Your total expenses will be capped at S$5,000 per policy year no matter how large your private hospital claims are.
  • For public hospitals, you will be fully covered from the first dollar.

PRUextra Plus

  • If you do not have a preference for private or public hospitals, this may be the plan for you.
  • At significantly lower premiums, you receive full coverage for public hospital services starting from the first dollar.
  • You will have to switch to the PRUshield A Plus plan to enjoy this option.


Interested? Ask your Financial Consultant for more information.

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MEET SHARON

Sharon, an existing PRUextra Premier policyholder, is 25 years old and just got married.

She starts at the Standard Level Premium – S$400 – for her age band.

During the year, she makes a public hospital claim for an appendectomy.

Her total claim is S$10,000, of which S$4,150 is covered by PRUextra Premier and the remaining amount by PRUshield Premier.

Because she chose a public hospital, she continues to enjoy Standard Level Premium the following year.

However, since she has made a claim, she is not entitled to the PRUwell Reward the next year.

 

MEET DAVID

David is 25 years old and an existing PRUextra Premier policyholder.

Upon his policy renewal he pays Standard Level Premium – S$400 – for his age band.

During the year, he makes a private hospital claim for an appendectomy.

His total claim is S$18,000, of which S$4,950 is covered by PRUextra Premier and the remaining amount by PRUshield Premier.

Upon his policy renewal the next year, he moves up to Level 2 and his premium changes to S$640.

If he doesn’t make any private or public hospital claims in the following year, he will move down to Level 1 and his premium will be reduced to S$560.

Regardless of his public hospitals claims, as long as David does not make a private hospital claim, he can move down one level, till he reaches Standard Level Premium.

However, as long as he makes a private hospital claim of more than S$1,000, he moves up 2 levels.

 


MEET KAREN

Karen is 25 years old and an existing* PRUextra Premier policyholder.

She starts at the Standard Level Premium – S$400 – for her age band.

During the year, she makes multiple private hospital claims for a total of S$100,000 for lung cancer treatment, of which S$13,150 is covered by PRUextra Premier and the remaining amount by PRUshield Premier.

As she is diagnosed with a severe condition^, she will remain at Standard Level Premium when she renews her policy in the following year, paying S$400.

Going forward, she will continue to pay Standard Level Premium for her age band, regardless of her claims experience. However, she will not be eligible to enjoy PRUwell Reward.

*Existing PRUextra Premier customers as at 30 April 2017
^Conditions which are life-threatening or terminal

Note: The examples are assuming the Standard Level Premium remains the same over the period illustrated. Premium numbers shown are for illustrative purposes only.

Frequently Asked Questions

New pricing approach for PRUextra Premier

The new pricing approach is a fairer pricing approach in that premium will be determined based on your claims experience in private or public hospitals. There are different levels of pricing under the new pricing structure and you will start at the lowest premium levels of your age band (Standard Level Premium). The future premium level may stay the same or change depending on the claim amount made from private or public hospital during the Review Period.

Only PRUextra Premier will be under the new pricing approach from 1 May 2017.

There are 6 different levels of premiums and you will start at the lowest premium level of you age band (Standard Level Premium).  The premium level can move up or down the levels depending on your hospitalisation usage – source of claim (private or public hospitals) and size of claims from PRUextra Premier.

The premium level move up or down the levels and is dependent on your hospitalisation usage – source of claim (private or public hospitals) and size of claims from PRUextra Premier.

Type of Hospital Claims payment made on PRUextra Premier during the Review Period (12 months) Movement on premium levels (subject to minimum Standard Level Premium and maximum of 5 Level)
Private Hospital S$1,000 and below Stay at the same level
Private Hospital Above S$1,000 to S$5,000 Move up two levels    ↑ 2 Levels
Private Hospital Above S$5,000 Move up four levels   ↑ 4 Levels
Public Hospital Any claims amount Move down one level ↓ 1 Level
Private or Public Hospital No Claims Move down one level ↓ 1 Level


In general, you will enjoy lower premiums if:

  • you maintain a no-claims record; or
  • you make small amount of claims at private hospital; or
  • you choose to use public hospitals

Yes, Standard Level Premium is the lowest premium level for the age band. However, you can get a PRUwell Reward which is 20%* saving on the Standard Level Premium if you did not make any claims during the Review Period and was at the Standard Level Premium in the prior year.

Example:

Eric bought PRUextra Premier and starts at Standard Level Premium, the lowest premium level of his age band.

Eric stays healthy and makes no private or public hospital claims during the Review Period. As a result, he is rewarded with the PRUwell Reward which is 20% saving on the Standard Level Premium in the following year.

*PRUwell Reward has been enhanced from 10% to 20% from 1 December 2017 onwards.

The premium level will change depending on the claims payment made on PRUextra Premier during the Review Period.

  1. If the claims payment is up to S$1,000, you will stay at the same level.
  2. If the claims payment is more than S$1,000 and up to S$5,000, you will move up 2 levels
  3. If the claims payment is more than S$5,000 or more, you will move up 4 levels

Example:

May was on Level 1.

  1. She made a private hospital claims during the Review Period, and PRUextra Premier paid out S$850. During the same Review Period, she also made a public hospital claim and PRUextra Premier paid out S$2,000. She will stay at the same level, i.e. Level 1. This is because the movement is determined by the total private hospital claim made during the Review Period, and not by each claim episode.

  1. However, if the PRUextra Premier paid out S$4,000, she will move up 2 levels, i.e. move from Level 1 to Level 3.

  1. However, if the PRUextra Premier paid out S$6,000, she will move up 4 levels, i.e. move from Level 1 to Level 5.

If you make a public hospital claim during the Review Period and there is no private hospital claim, your premium level will move down by one level.

Example:

John was on Level 3.

He made a public hospital claim during the Review Period and PRUextra Premier paid out S$9,000. His premium level will move down by 1 level, i.e. from Level 3 to Level 2.

If you do not make any claims, the premium level will move down by one level.

If you are already at Standard Level Premium, and do not make any claims during the Review Period, you will get the PRUwell Reward, which is 20%* saving on the Standard Level Premium.

Example 1:

Susan was on Level 2.

She did not make any claims during the Review Period. Her premium level will move down by 1 level, i.e. from Level 2 to Level 1. As she was not on Standard Level Premium in the prior year, she is not entitled to the PRUwell Reward.

Example 2:

Eric bought PRUextra Premier and starts Standard Level Premium with PRUwell Reward, the lowest premium level of his age band.

Eric stays healthy and makes no private or public hospital claims during the Review Period. As a result, he continues to be rewarded with the PRUwell Reward, which is 20%* saving on the Standard Level Premium in the following year.

*PRUwell Reward has been enhanced from 10% to 20% from 1 December 2017 onwards.

The Review Period is over the past 12 months starting 2 months before the next policy renewal date. If it is the first Policy Year, the Review Period is over the past 10 months.

Prudential will assess the cutomer's claim experience over the Review Period to determine the premium level in order to calculate their renewal premium.

Example
Policy start date: 1 May 2017
Policy renewal date: 1 May 2018

We start the Review Period 2 months before the policy renewal date (28 February 2018) and assess the past year’s claims experience.

Review Period 1: 1 May 2017 to 28 February 2018 (there are only 10 months in this Review Period)

Policy renewal date: 1 May 2019
Review Period 2: 1 March 2018 to 28 February 2019 (12-month period)

Policy renewal date: 1 May 2020
Review Period 3: 1 March 2019 to 28 February 2020 (12-month period)

The gradual decrease in premium is to recognise that customers who have sought treatment have a higher likelihood to continue to seek medical attention for their ailment. It is only fairer for such customers to demonstrate a period without private claims before they move back to Standard Level Premium and enjoy PRUwell Reward.

Yes, unless the claims are not payable under PRUextra Premier e.g. due to exclusion (pre-existing condition) or have been paid by a third party.

Yes, the new pricing approach is only applicable to PRUextra Premier.

This is to address the rampant medical inflation to ensure fairer pricing, to inspire healthy living, and to ensure the sustainability of private healthcare plans in the long term. The current pricing of plan that complement the main PRUshield with full coverage for private hospital is not sustainable in the mid to long term. This new pricing approach will help address these challenges. It is one of the key initiatives we are implementing to ensure pricing remains affordable for you in the long term.

Private hospitals are responsible for a higher share of the medical inflation. A 2016 LIA study showed that the average bill sizes incurred at private hospitals was inflating at a noticeably more rapid rate than public hospitals, with a two-year compound annual growth rate (CAGR) of 15% compared to just 3% for public hospital A wards and 2% for public hospital B1 wards. Today, average bill sizes at private hospitals are three times larger than that of public hospitals.

Premium Level

Prudential will regularly review the claims threshold and make changes where appropriate to ensure our pricing approach remains fair and competitive.

The premiums at the different levels are as follow:


The multiplier levels are available on PRUaccess.

In the first year, the maximum premium increase would be two times the Standard Level Premium for those who make total claims greater than S$18,500 (PRUshield pays out S$13,500, PRUextra pays out S$5,000).

This pricing model was developed after much consideration / consumer research. It is designed to ensure fairer pricing, inspire healthy living, encourage use of public hospitals whenever possible and ultimately, ensure affordability and sustainability of healthcare plans in the long term.

For the quantum, it is important to focus on the absolute numbers. Our experience is that the average PRUextra Premier bill is more than S$8,000. The premium at the next renewal is a fair premium. It is a fairer approach where customers will take personal responsibility for what they use. This way, it is a balance between the majority subsidising for those who are seeking treatment; and the latter paying a fairer premium for what they use.

There are no changes in PRUextra Plus – both the premium level as well as the premium structure, i.e. it will not be on a new pricing approach.

Existing Customers

8 in 10 of our customers have not made claims in the last three years and will benefit the most from the new pricing approach as they will receive a 20%^ saving on their Standard Level Premium when they renew their policies from May 2017 onwards.

For customers who have undergone or undergoing active medical treatment for chronic severe illnesses* in the last three years (approximately 10%), they will not be moved into the new pricing model and will continue to pay the lowest premiums of their age bands (i.e. Standard Level Premium), regardless of claims amount made going forward.

For the remaining customers who have made some claims in the last three years, they will start at Standard Level Premium - the lowest premium level of their age group.

For existing PRUextra Premier customers who are with us as of 30 April 2017 and are diagnosed with a chronic severe illness* in the future, their premium will not be subject to the new pricing approach. This means that they will only pay Standard Level Premium regardless of the claim amount.

^PRUwell Reward has been enhanced from 10% to 20% from 1 December 2017 onwards.

*refer to Q20 below on the list of chronic severe illnesses.

The chronic severe illnesses are:

  • Blood Disorder
  • Cancer
  • Ischaemic heart disease
  • Coronary artery disease
  • Rheumatic heart disease
  • Chronic obstructive lung disease
  • Chronic renal disease, including renal failure
  • Cerebrovascular accidents
  • Chronic Liver Cirrhosis
  • Systemic Lupus Erythematosus
  • Degenerative diseases

and includes any illness, disorder or condition which is life threatening or terminal.

It should not, bearing in mind we are talking about the plan complementing the main PRUshield for private hospital coverage. This continued double digit growth in private medical costs over the last few years affects everyone. Customers can opt for public hospitals or choose more affordable plan types for their treatment.

For customers of PRUextra Premier who have undergone or undergoing active medical treatment for chronic severe illness* in the last three years, you will not be moved into the new pricing approach. This means, these customers will continue to pay Standard Level Premium, which is the lowest premiums of their age bands, regardless of claims amount made going forward.

Furthermore, for existing PRUextra Premier customers as of 30 April 2017 who are diagnosed with a chronic severe illness* in the future, their future premium will not be subject to the new pricing approach. This means that they will only pay Standard Level Premium regardless of the claim amount.

For elderly customers, if they prefer not to transition into PRUextra Premier under the new pricing approach, they can opt for our new co-pay option – PRUextra Premier Saver, for private hospitals or riders for public hospitals at significantly lower premiums.

*refer to Q20 above on the list of chronic severe illnesses.

As a general guideline, you will start at Standard Level Premium - the lowest premium level of your age group.

If you have not made any claims in the last three years, you will get a PRUwell Reward which is a 20%^ saving on your Standard Level Premium when you renew your policy from May 2017 onwards. 8 in 10 of Prudential’s customers will benefit from PRUwell Reward this year.

In 2018, premiums will increase from Standard Level Premium when private hospital claims exceed S$1,000 and will be revised further when private hospital claims exceed S$18,500 (equivalent to PRUextra Premier claims of S$5,000).

Going forward, just as premiums will move up when private hospital claims increase, they will be lowered accordingly when no private hospital claims are incurred during Review Period.

However, for existing PRUextra Premier customers who are with us as of 30 April 2017 and are diagnosed with a chronic severe illness* in the future, their future premium will not be subject to the new pricing approach. This means that they will only pay Standard Level Premium regardless of the claim amount.

^PRUwell Reward has been enhanced from 10% to 20% from 1 December 2017 onwards.

*refer to Q20 above on the list of chronic severe illnesses.

No, all PRUextra Premier will be based on the new pricing approach from 1 May 2017 onwards.

Options for You

You can choose to switch from PRUextra Premier to more affordable co-pay plans - PRUextra Premier Saver or PRUextra Premier Lite.

With PRUextra Premier Saver, you will get first dollar coverage for confinement in a public hospital. For hospital confinement in private hospital, you will need to pay the first S$1,000* of the deductible plus 5% of the remaining total bill after deducting the deductible portion. Regardless of the private hospital bill size, the total amount that you will need to co-pay is capped at S$5,000* per policy year.

*Increase by 50% when you are above age 85.

Yes, PRUextra Premier Saver will also have the benefits offered under PRUextra Premier. In addition, there will be a new Get Well Benefit under PRUextra Premier Saver. You will receive a Get Well Benefit if you are hospitalised for at least 8 consecutive days.

Communication

You will receive a communication pack 50 (+/-) days before their policy renewal. The pack will consist of:

  • Cover letter to introduce Prudential’s new suite of healthcare insurance solutions.
  • A link to a microsite comprising more information including FAQs and a product video.
  • Leaflet to explain the new pricing approach.

This will be followed by the premium notice 40 (+/-) days before your policy renewal.

If your policy is renewing in May 2017, the communication pack will be sent to you on 29 March 2017, follow by the premium notice on 31 March 2017.

At the same time, you will be receiving a SMS about 50 (+/-) days before your policy renewal to alert you of the communication pack that they will soon receive. It will also include a link to the product video on the new pricing approach.

Find out more

Please refer to the customer portal PRUaccess for the revised premiums based on your age band.

For more information contact your Financial Consultant or call our PRUCustomer Line on 1800 333 0333 (Monday – Friday, 8.30am – 5.30pm).

Note: Terms and conditions apply. PRUextra premiums cannot be paid using Medisave. You are recommended to read the product summary and seek advice from a qualified Prudential Financial Consultant for a financial analysis before purchasing a policy suitable to meet your needs. Buying health insurance products that are not suitable for you may impact your ability to finance your future healthcare needs. Premiums are not guaranteed and may be adjusted based on future claims experience. Prudential reserves the right to vary premiums at any time by giving 30 days’ written notice to the policyowner before doing so. The information on this website is for reference only and is not a contract of insurance. Please refer to the exact terms and conditions, specific details and exclusions applicable to these insurance products in the policy documents that can be obtained from your Prudential Financial Consultant. The information contained on this website is intended to be valid in Singapore only and shall not be construed as an offer to sell or solicitation to buy or provision of any insurance product outside Singapore. In case of discrepancy between the English and Mandarin versions of the leaflets, the English version shall prevail.

Information is correct as at 1 December 2017.

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