Study findings on portability of Integrated Shield Plans to be shared by end of the year
The portability of Integrated Shield Plans is a “very complex matter” that may have “unintended consequences”, says Minister of State for Health Rahayu Mahzam.
File photo of people in Singapore crossing a street. (Photo: TODAY)
This audio is generated by an AI tool.
SINGAPORE: The Ministry of Health (MOH) intends to share its findings from a study done on the portability of Integrated Shield Plans by the end of the year, Minister of State for Health Rahayu Mahzam said in parliament on Monday (Sep 9).
Integrated Shield Plans offer private insurance coverage on top of MediShield Life, Singapore's national health insurance scheme.
Health Minister Ong Ye Kung said in April that the feasibility study, first announced in 2021, could be completed this year.
Authorities have previously said portability, or the ability for one to freely switch health insurer, for Integrated Shield Plans may cause other implications such as pressure among insurers to cut benefits or increase premiums in order to remain sustainable.
In response to a question from Member of Parliament (MP) Tan Wu Meng (PAP-Jurong), Ms Rahayu reiterated that the portability of Integrated Shield Plans is a “very complex matter” that may have “unintended consequences”.
“When each insurer is uncertain about the risk that they have to bear, premiums may actually go up and all in all, this may not be helpful,” she said.
“We are really looking into this (and) we are intending to share our findings by the end of the year.”
The MediShield Life scheme is undergoing a comprehensive review to ensure it continues to protect Singaporeans against large medical bills, as bills increase and the healthcare landscape evolves. Coverage may be broadened and claim limits may need to go up when the review is completed this year, said Minister of State for Health Rahayu Mahzam. At the same time, when it comes to Integrated Shield Plans (IPs), “many people pay for protection that they do not use”, she said. Ms Rahayu said the Ministry of Health (MOH) will do more to help consumers understand their own needs and choose the right health insurance to buy. It will work with the CPF Board and Life Insurance Association on this, in addition to existing resources, she said. Ms Rahayu was responding to an MP’s questions in Parliament on Monday (Sep 9).
Separately, the MediShield Life Council is “currently undertaking a comprehensive review” of the MediShield Life, said Ms Rahayu.
The key objective of the review is to ensure that the national health insurance scheme “continues to protect Singaporeans against large medical bills amid rising bill sizes and the evolving healthcare landscape”.
“This means that 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,” she said, adding that more details will be shared when the review is completed later this year.
Despite MediShield Life being designed to cover the vast majority of subsidised bills, Ms Rahayu noted that many Singaporeans still opt for Integrated Shield Plans. Some will also choose to buy riders offered by private insurers to further reduce out-of-pocket hospital expenses.
However, about half of those with Integrated Shield Plans and rider protection end up using subsidised care in public hospitals, noted Ms Rahayu.
“These patients may not need Integrated Shield Plans or riders, because MediShield Life is generally sufficient for such episodes, and will be further enhanced after the major review this year,” she said.
Amid rising premiums for Integrated Shield Plans and riders offered by private insurers, authorities will do more to help consumers understand their needs and choose the right health insurance.
Ms Rahayu pointed to the Central Provident Fund’s (CPF) website and MoneySense, the national financial education programme, which have articles on what to consider before buying an Integrated Shield Plan.
MOH has also published a comparison of indicative lifetime premiums across Integrated Shield Plans earlier this year, on top of other resources that compare the benefits, features and premiums of such plans.
“We can support individuals in making more informed health insurance decisions, and will be working with CPF Board and the Life Insurance Association Singapore to achieve this,” said Ms Rahayu.
