Why Medishield pays so little???

Someone wrote with obvious frustration to the Straits Times Forum page few months ago, complaining that Medishield only pays $1,438 for a $50,000 Hospital Bill, a mere 3% of the total bill.

Many people still don't realise the danger of relying on Medishield to cover their Hospital Bill. Let me share this danger with you.
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1) Medishield have very low Benefit Limits
a) Max $250/day for Daily Room and Boards (Bed charges, Medication, and all other medical related services)
b) Max $1,100 claimable for the most complicating surgery (Operation Cost)

2) Co-insurance Component
a) Deductible - $1,000 for C ward, $1,500 for B2 and above (Initial amount to pay in the hospital bill)
b) Co-insurance - 10-20% (percentage of balance amount to pay after the settling deductible)

3) Low Outpatient treatment limits
Claimable as low as $150/7days for Chemotheraphy, $80/day for Radiotheraphy, etc...

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Give you an example:
Mr Tan stays in Hospital A ward for 10 days for a Heart Transplant(Table 7 ops).
He is covered under Medishield.

Room and Board Charges - $7,000
Operation Charges - $18,000
Total Bill - $25,000

Claimable
Room and Board - $250 x 10 = $2,500
Operation Charges - $1,100
Total Claimable - $3,300
Less Deductible - $1,500
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$1,800 (after deductible)
Less Co-ins $180
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$1,620 (to claim from Medishield)

(Mere 6.5% of total bill claimable)
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Medishield is for stays in C or B2 wards. You never know when you may need to stay in higher wards. Don't take chance. Don't be Penny wise pound fool. Upgrade yourself to a better plan...