New Scheme: You have to pay 5% of hospital bill with new Integrated Shield Plan Riders

From 2005 to 2015, the Consumer Price Index for healthcare climbed a steep 30.6 per cent, outpacing Singapore’s core inflation. Prices of consumer goods and services rose by 21.7 per cent in the same period.[1]


As healthcare bills go up, Singaporeans now need private medical insurance more than ever. When Senior Minister of State for Health Chee Hong Tat announced on 7 March in Parliament that patient must bear a minimum 5 per cent co-payment with the new Integrated Shield Plan (IP) riders, what does it mean to you?[2]


What is this new scheme about?

This new shceme will require anyone buying a new IP rider  to pay at least 5 per cent of their hospital bill. In order to give everyone a peace of mind, the total amount that one have to pay can be capped at $3,000 a year if you are treated by doctors on the insurer’s approved panel or had received prior approval from the insurer.


At present, only four of the six insurers have such panels and pre-authroisation. They are namely AIA, AVIVA, AXA and Great Eastern.


How this change will affect existing policyowners with IP Riders?

For those who are already enrolled into any of the IP Riders that covers both the co-insurance and deductible component, you will continue to enjoy the zero co-payment benefit up until the day that the insurer decide to change this benefit.


As it is stated in your policy contract that the insurer may change the benefits, cover, premiums or terms and condition of your policy by giving you at least a 30 days written notice before the change is effected.


In addition, insurers will give existing policyowners the option to switch into the new scheme to save money on premiums and the insurers will not exclude any pre-exisiting conditions that are covered prior to the switch.


What happen to people who are signing up for IP Riders  between 8 March 2018 to 1 April 2019?

For those who plan to enrol into any of the IP Riders, you will enjoy the zero co-payment benefit till 1 April 2021 at the latest before the new scheme will kick in.


When can people sign up for the new IP Riders scheme?

Ministry of Health is giving all insurers until 1 April 2019 to come up with new riders that include the co-payment. Each of the six insurers will communicate their launch date to the public in due course.

Most insures are still reviewing their new product design and more details will be disclose. As for exisiting customers, insurers will update you of any changes through their renewal letter piror to your policy renewal.


Please seek clarification from your financial planner if you have any queries.




Please note:


The information contained in this article is for general guidance on matters of interest only. While we made every attempt to ensure that the information contained herein has been obtained from reliable sources, we are not responsible for any errors or omissions, or for the results obtained from the use of this information. Neither the information presented nor any opnion expressed constitues a solication for the purchase or sale of any financial products. As such, before taking any action you should seek advice from an independent professional advisor.

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