Cancer Drug List

Hello there! Welcome to another edition of SG Retire Steady Newsletter, where I share my insights, experience, resources and knowledge so that you can achieve financial freedom in a sensible and reliable manner. Read on!

In August 2021, MOH announced the introduction of a Cancer Drug List, which was implemented in 2022 for Medishield Life/Medisave and in 2023 for integrated shield plans. Naturally, conversations on cancer treatment and its related costs have become more commonplace.

What is the Cancer Drug List?

This list was introduced by MOH to include clinically proven and more cost-effective cancer treatments. Only treatments on the CDL can be claimed under Medishield Life, Medisave, and Integrated Shield Plans and there are limits imposed based on the type of drug.

The purpose of this list is to allow MOH to negotiate better prices with pharmaceutical companies and to extend subsidies for more cancer drugs. The success of this move will keep cancer treatments and insurance premiums affordable in the longer term.

More than 90% of cancer drug treatments approved by the HSA are listed on CDL.

What about cancer treatment that are not on the CDL?

Other than the efficacy of the treatment, CDL is also concerned with the cost-effectiveness. For treatment that are HSA registered and HSA approved for the specific cancer indication, the drug will be included in CDL if the prices of those drugs drop below MOH’s threshold.

Currently though, these drugs are not covered by Medishield Life, Medisave or Integrated Shield Plans.

Can I have coverage for non-CDL drugs too?

The private insurers have acted on this change and although they are not allowed to include non-CDL drugs onto the Integrated Shield Plans, they are allowed to do so under the ISP Riders, which are not integrated with Medishield Life.

The amount of cover differs from insurer to insurer, so do check with your insurance representative to assess your cover.

Non-CDL drug cover will also cover drugs from different classifications, such as drugs which are HSA registered but not approved by HSA for the specific indication.

The only classification that is not covered under the non-CDL drugs are those that have not been approved by HSA or any other regulator.

If I have an ISP and its rider, am I adequately covered financially?

Beyond what is covered by Integrated Shield Plans and their riders, there are other costs that you might incur.

• Co-payment from the ISP and rider

• Loss of income while undergoing treatment and during recovery

• Experimental drugs / alternative therapy

• Health supplements

• Caregiving costs

If you have separate financial arrangements to address these potential costs, an Integrated Shield Plan and rider should be robust enough to tackle cancer.

You should also keep an eye out for your retirement needs, ensuring that you have sufficient financial resources to get through a cancer battle AND to retire in the future. You wouldn’t want your retirement plan to be derailed because of cancer.

Have a chat with your personal financial planner to conduct a financial projection exercise to get the peace of mind that you deserve.

That’s a wrap for this edition! Thanks for being here.

Feel free to reply to this email if you have any questions, suggestions or feedback. I would love to hear from you.

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Sim Jit-Vern
B.Eng (Hons), CFP, ChFC, CLU, CIAM, ADWM, ASEP, IBFA

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