Effect of Changes to Integrated Shield Plans by Insurers on Policyholders' Out-of-pocket Expenses and Access to Healthcare Services
Ministry of HealthSpeakers
Summary
This question concerns the impact of recent Integrated Shield Plan (IP) changes on policyholders’ out-of-pocket expenses and healthcare access, as raised by Mr Neil Parekh Nimil Rajnikant. Minister for Health Mr Ong Ye Kung responded that while IPs are commercial products, the Ministry of Health regulates key parameters like co-payments to safeguard consumer interests. He noted that comprehensive coverage has driven up claim volumes and bill sizes, causing significant premium increases and necessitating a review of insurance policy designs. Minister for Health Mr Ong Ye Kung reiterated that basic healthcare affordability is guaranteed through government subsidies, MediShield Life, MediSave, and MediFund. The Ministry of Health will continue to publish comparative data on IP premiums and coverage to help the public make informed decisions about private insurance.
Transcript
10 Mr Neil Parekh Nimil Rajnikant asked the Minister for Health (a) how have the recent changes made by insurers to their Integrated Shield Plans (IPs) affected the out-of-pocket expenses and access to healthcare services for policyholders; (b) what measures are being taken to ensure that the interests of policyholders are adequately safeguarded amidst these changes; and (c) whether any further measures are being explored to mitigate issues related to the affordability and accessibility of coverage under IPs.
Mr Ong Ye Kung: The Government's main assurance to Singaporeans is the universal provision of subsidised healthcare in public hospitals, supported by subsidies, MediShield Life, our national health insurance scheme, MediSave and MediFund.
On the other hand, Integrated Shield Plans (IPs) are private commercial products. IPs are subject to the Ministry of Health's (MOH) requirements on key parameters, such as the co-payment and deductible. Private insurers update their IPs regularly, such as the premiums, claim limits and scope of coverage, in accordance with the policy contractual terms, and based on their commercial and actuarial considerations.
In making these changes, MOH expects insurers to ensure that their policyholders' interests and well-being are safeguarded. The Member may refer to the oral reply in response to Parliamentary Questions 31 and 32 for the Sitting on 4 February 2025 for more details. [Please refer to "Insurers' Responsibility in Informing and Giving Adequate Notice to Policyholders for Changes in Coverage and Claims", Official Report, 4 February 2025, Vol 95, Issue 150, Written Answers to Questions for Oral Answer not Answered by End of Question Time section.]
Insurers have recently been raising IP and especially Rider premiums. MOH has publicly expressed our concerns on these commercial products before, that due to their comprehensive coverage, they have changed the dynamics between patients and doctors. As such, individuals with IPs and Riders are significantly more likely to make claims, with significantly bigger bills. This has contributed to claim amounts rising sharply, which, in turn, drive up premiums. We have urged the insurance industry to take a hard look at their policy designs, which we believe are fueling healthcare costs and also detrimental to their business.
MOH will continue to publish information on IP premiums and coverage to facilitate consumers in making informed decisions on private insurance plans. The public needs to constantly examine if the premiums paid are worth the healthcare expenses they cover.