MOH will do more to help people pick the right IP insurance
People here will be given more help to understand the medical insurance that best suits them, Minister of State for Health Rahayu Mahzam said in Parliament on Sept 9.
The Central Provident Fund and MoneySense, the national financial education programme, already have articles giving advice on what to consider before buying an Integrated Shield Plan (IP), which covers major non-subsidised hospital treatments and stays.
The Ministry of Health (MOH) has also published what people can expect to pay for IP premiums over their lifetime, as well as comparisons of benefits provided by different insurers.
About half of policyholders who have IPs as well as riders that cover the bulk of the portion of bills not covered by IPs still end up opting for subsidised wards and day surgery, Ms Rahayu said.
“These patients may not need IPs or riders, because MediShield Life is generally sufficient for such episodes, and will be further enhanced after the major review this year,” she said.
“In addition, premiums for IPs and riders charged by private insurers are getting more and more expensive.”
She was responding to a question by Ms Jessica Tan (East Coast GRC), who had asked if more help could be given, especially for seniors, “to minimise unnecessary coverage and to ensure that they have adequate health insurance coverage to pay for their medical bills when they need it”.
MediShield Life, the mandatory national medical insurance scheme, is designed to cover nine in 10 large subsidised bills incurred at public hospitals. A comprehensive review is under way, and results are expected to be shared later in 2024.
Ms Rahayu said the review is being done to ensure that MediShield Life continues to protect Singaporeans against large medical bills.
“Coverage may broaden and claim limits may need to go up, to give Singaporeans greater peace of mind should they encounter a major health episode” as a result of the review, she noted.
Dr Tan Wu Meng (Jurong GRC) asked for an update on MOH’s study on whether IPs could be made portable. The study by the ministry follows many calls to allow people to switch insurers to get more competitive rates. Dr Tan said he has been approached by residents who fear they might not be able to afford IP premiums in the future.
Some countries, such as Australia, make portability of health insurance compulsory.
Today, most people in their late middle age are not able to change to a different insurer without incurring penalties, such as exclusions for certain medical problems. This could happen if they suffer from pre-existing conditions, such as high blood pressure, which 37 per cent of adults here suffer from, or diabetes, which affects 9.5 per cent of adults.
Ms Rahayu said MOH will share the findings of its portability study at the end of 2024.
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