Coincidentally, this piece of news came out after my recent discussion on rising Integrated Shield Plan (IP) premiums on one hand, and the importance of having a comprehensive medical coverage in Singapore on the other hand, with reference to the largest claim I have done for a client, who was hospitalized for 107 days that came close to $900,000.
Link -> https://weekhai.com/case-study-6/
I’m sure some of us might have felt the pinch on the cash payment required for Additional Cash Outlay on IP and their Riders, when rates this year were again revised (primarily for Private Hospitals plans). We have seen a lot of development in the last 5-10 years for Hospitalization & Surgical plans. IP initially covered 100%, and we saw competitive premiums across all insurers trying to capture the market share. However, rising claims experience meant that premiums especially for plans that cover Private Hospital wards skyrocketed. MOH then introduced a 5% Co-Payment guideline for attaching Riders from April 2021 onwards. And with rising cost of cancer treatment, the Cancer Drug List (CDL) was introduced in April 2023, with a cap placed on cancer drugs on the Cancer Drug List, while Non-CDL cancer drugs are not covered.
I saw this news with much delight, and I guess it’s time for MOH to step in and review the entire eco-system of healthcare financing. Changes, if any, will take a long time, but at least the government has acknowledged the problem. Let’s watch this space. Meanwhile, these are some of the issues when I have conversations with clients:
- Rising premiums for Integrated Shield Plans and attaching Riders.
- Claims-Based Pricing on Rider, penalizing clients with higher renewal premiums and perhaps defeating the purpose of having it in the first place?
- Pre-existing conditions preventing switching to a more affordable provider.
- Speed of getting treatment? Private vs Public?
What are your thoughts or experience? Do share with me your thoughts in the comments section below.
Wee Khai, ChFC
Wee Khai is an avid Soccer fan, and finisher of 15 Full-Marathons.
Wee Khai 