Full IP portability will not be mandated in Singapore
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IPs, offered by private insurers, provide additional coverage on top of what is offered under national health insurance scheme MediShield Life.
ST PHOTO: LIM YAOHUI
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SINGAPORE – Full portability of Integrated Shield Plan (IP) insurance policies will not be mandated in the Republic – it is not an international best practice, according to a feasibility study conducted by the Ministry of Health (MOH).
The study has concluded, an MOH spokesman said in a statement on Nov 19.
“In other countries, insurance is portable insofar as it is mandatory national insurance, which is what we are doing under MediShield Life,” he added.
“Some countries, namely, Australia and Ireland, implemented portability for supplementary and private insurance, but those are done under very specific circumstances. It is also not cheap, involving spending of public monies and setting up new administrative structures.”
IPs, offered by private insurers, provide additional coverage on top of what is offered under MediShield Life, Singapore’s mandatory health insurance scheme. People typically buy IPs to cover stays in Class A and B1 wards in public hospitals or in private hospitals.
MOH has been studying IP portability for some time now as there are policyholders who wish to switch to another insurer but are unable to do so due to pre-existing conditions.
It said that it had started the study in 2021 and did a thorough review, including consulting insurance experts and policymakers in other countries and stakeholders. The study also looked into the systems and arrangements in other countries.
“Ultimately, the basic problem is that private insurers are not competing for the business of higher-risk policyholders with pre-existing conditions. To address (the policyholders’) concerns, we need to ensure that MediShield Life provides them with an effective safety net, complemented by MediFund when required,” the spokesperson said. MediFund is the government safety net to help people who cannot afford medical treatment.
The MOH statement comes after Minister of State for Health Rahayu Mahzam gave a detailed update on the IP portability study on Nov 12
Ms Rahayu said then that portability between insurers may lead to higher premiums and higher healthcare costs.
“MOH does not believe that mandating full portability for IPs is the right solution for the issues faced by policyholders,” she added.
On Nov 19, the MOH spokesman said there are dispute resolution platforms such as the Financial Industry Disputes Resolution Centre for policyholders who face claim disputes with their insurers.
MOH will continue to look at measures to manage healthcare costs and ensure that all Singaporeans have access to good and affordable basic healthcare, he added.
