Integrated Shield Plan Legacy Rider Transition, Voluntary Switching Rate and Over-servicing Risks
Ministry of HealthSpeakers
Summary
This question concerns the transition of Integrated Shield Plan (IP) legacy rider policyholders to compliant riders and the management of healthcare costs. Mr Yip Hon Weng asked about mandatory transition proportions after April 2028, voluntary switching rates, and whether retaining legacy riders delays curbing over-servicing and claims escalation. Minister Ong Ye Kung stated that only policyholders purchasing riders between 27 November 2025 and 31 March 2026 must transition from April 2028, leaving insurers to decide approaches for earlier buyers. Minister Ong noted that around 182,000 policyholders downgraded or cancelled riders in 2025, though post-launch switching trends remain too early to assess. Minister Ong acknowledged that broader cost-containment impacts will take longer if few policyholders switch, leaving insurers to adjust legacy terms over time to ensure sustainability.
Transcript
23 Mr Yip Hon Weng asked the Coordinating Minister for Social Policies and Minister for Health (a) what proportion of existing Integrated Shield Plan rider policyholders will be required to transition to compliant riders after April 2028; (b) what proportion has switched voluntarily; and (c) whether retaining most legacy riders indefinitely will delay the intended reduction in over-servicing, claims and private healthcare cost escalation.
Mr Ong Ye Kung: Before the new Integrated Shield Plan (IP) riders were introduced on 1 April 2026, about 182,000 policyholders downgraded or cancelled their riders in 2025. It is too early to assess trends in policyholder movements since the launch.
Under the new requirements, only policyholders who purchased IP riders between 27 November 2025 and 31 March 2026 are required by the Ministry of Health to transition to compliant riders no later than their next policy renewal from April 2028. The Ministry does not track the proportion of legacy rider policyholders that fall within this group. For policyholders who purchased their riders before 27 November 2025, individual IP insurers will decide on their own approach.
The revised requirements are designed to instil more discipline in the charging and utilisation of healthcare services and hence, better manage claims. This is reflected in an average reduction of around 35% to 40% in premiums, depending on the age band, as compared to legacy riders with maximum coverage.
The Member is right that the impact on the broader private healthcare ecosystem will take longer to materialise, if only a minority of policyholders are on the new riders. It is up to insurers to adjust the terms of legacy riders over time and place them on a more sustainable footing, while enabling more policyholders to benefit from more affordable premiums.