Availability and Affordability of Group Workplace Insurance for Employees Aged 65 and Above
Ministry of ManpowerSpeakers
Summary
This question concerns the availability, affordability, and impact of group workplace insurance on hiring employees aged 65 and above, raised by Mr Ng Shi Xuan to the Acting Minister for Manpower. In response, Ms Jasmin Lau noted that under the Work Injury Compensation Act, employers must provide injury compensation regardless of worker age. She explained that group work injury compensation insurance premiums are not based on age profiles and show no evidence of affecting senior hiring. However, optional group medical insurance used to fulfill Employment Act obligations or provide additional benefits may incur higher premiums for older workers. To address these cost concerns, the Tripartite Workgroup on Senior Employment is studying sustainable employee medical benefits and will release recommendations later this year.
Transcript
58 Mr Ng Shi Xuan asked the Acting Minister for Manpower (a) whether the Ministry has studied the availability, affordability and age limits of group medical, personal accident and other workplace insurance for employees aged 65 and above; (b) whether there is evidence that such factors have affected hiring or re-employment of older employees; and (c) whether measures will be introduced to ensure such insurance keeps pace with rising retirement and re-employment ages.
Ms Jasmin Lau: The Ministry of Manpower recognises the importance of protecting workers from the costs of injuries at work. Under the Work Injury Compensation Act, employers are required to provide work injury compensation (WIC) for medical expenses arising from work injuries, regardless of the age of the worker. To provide for this, employers typically purchase WIC insurance on a group basis. Such insurance products cover employees of all ages, and insurers do not determine the premiums based on the age profile of the employees. We have not seen evidence that WIC insurance premiums affect employers' decisions to hire or retain senior workers.
Employers are also required under the Employment Act to reimburse employees for medical consultation fees incurred when obtaining a medical certificate for paid sick leave. Some employers may choose to provide group medical insurance as a way to meet these statutory requirements, or as a form of additional employment benefit for talent attraction and retention purposes. The premiums of such insurance may increase with the ages of the insured workers.
Under the Tripartite Workgroup on Senior Employment convened last year, some employers have expressed concerns about the high cost and the limited coverage for older workers under such non-mandatory group medical insurance plans. The Workgroup is studying how employee medical benefits can evolve to remain sustainable. The Workgroup will share its findings and recommendations later this year.