Higher medical insurance coverage for maids, migrant workers

Employers of maids and other migrant workers on work permits and S Passes will soon need to buy higher medical insurance coverage for their employees.

They must buy plans with a minimum annual claim limit of $60,000 for hospitalisation and surgical procedures, up from $15,000 now.

But they will no longer need to pay for their workers' medical treatment upfront and claim the amount from insurers later, as insurers will be required to reimburse claims for inpatient and day surgery bills directly to hospitals, said Senior Minister of State for Manpower Koh Poh Koon yesterday.

"This will help employers who are cash-strapped, and free up cash flow for businesses and help families having migrant domestic workers," said Dr Koh during the debate on his ministry's budget.

The changes will take effect by the end of this year for all new applications and renewals of work permits and S Passes.

More details will be provided later on, said the Ministry of Manpower in a press release yesterday.

Employers are legally responsible for the cost of medical treatment for migrant workers.

Dr Koh said the higher minimum coverage will give employers greater peace of mind in financing their workers' bills, as migrant workers do not enjoy subsidies for medical bills, unlike locals, and medical costs are expected to increase over time.

As it is, an average of more than 1,000 employers of migrant workers a year face bills larger than $15,000, he said.

With the higher coverage requirement, insurers will still cover the first $15,000 of bills, as well as 75 per cent of amounts above $15,000, up to the annual claim limit.

Employers will co-pay the other 25 per cent, as well as any further charges beyond the claim limit.

Dr Koh also said there will be standardised allowable exclusions and age-differentiated premiums to keep premiums affordable.