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SINGAPORE – The number of private hospital bills that MediShield Life will cover will be reduced from 35% to 25% from the first quarter of next year, if the MediShield Life Council proposal is implemented.
This change may affect the private integrated (IP) plans offered by seven insurers, which incorporate MediShield Life.
The proposed change is because, at 35 percent prorated, a private hospital bill far exceeds the cost of the same procedure in a subsidized room, which is what MediShield Life primarily covers.
This means that the poorest patients receiving subsidized care are essentially financing the most expensive private care of the richest patients in private hospitals.
Therefore, the council has decided to reduce the claimable amount to 25 percent of private hospital bills, as this amount is more in line with subsidized bills, based on recent bill sizes.
This change will affect the seven insurers that offer integrated protection plans for private care that 70% of residents have here.
As these plans incorporate MediShield Life, which is mandatory for all Singaporeans and permanent residents, your premiums are paid with Medisave, subject to a limit.
It will mean that insurers will have to pay a larger share of private hospital claims as they will receive a lower payment amount from MediShield Life.
However, policyholders who opt for private class A or B1 treatment in public hospitals will continue to receive 35 percent of their bills paid by MediShield Life.
The Singapore Life Insurance Association (LIA) said that it and IP insurers will study the proposed changes “closely” and provide input to MediShield’s Life Council during their public consultation.
Their first reaction is that “some of these proposed changes, if implemented, may lead to further escalation of IP claim costs and consequently, IP premiums.”
The LIA told The Straits Times: “IPs continue to experience significant increases in claims costs, which is putting upward pressure on IP premiums. Most IP insurers continue to post net losses since the launch of MediShield. Life in November 2015 “.
He added that his priority is to ensure that Singaporeans “continue to have access to affordable quality healthcare with the additional coverage provided by the IPs” and, at the same time, remain financially sustainable for insurers so that they can “continue to offer these services. policies “.
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