Premium Hikes in Singapore | Integrated Shield Plan Insurance

Health Insurance | Insurance

by Priyadarshini 1 September 2021

There has been a lot of commotion over the premium hikes for MediShield Life and Integrated Shield Plans, Singapore’s national semi-private healthcare system. All three concerned sides – panel doctors, Singapore Medical Association (SMA), and Life Insurance Association (LIA)  have issued a flurry of rebuttals as to why premiums are rising, but the fight appears to be deadlocked. It is bad news for insurance buyers. In this blog, we discuss insurance premium hikes in Singapore. Read on to know more.

What exactly is an Integrated Shield Plan (ISP)?

An Integrated Shield Plan can be divided into two parts, according to the Ministry of Health (MOH)- MediShield Life, a basic health insurance plan administered by the Central Provident Fund (CPF) Board. Also, an additional layer of coverage is provided by private insurance companies in Singapore. This layer of coverage is typically used to cover the costs of being admitted to private hospitals or Class B1 or A wards in public hospitals. Around 70% of Singaporeans supplement their MediShield Life coverage with Integrated Shield Plans from private insurers.

 Integrated Shield Plan Premiums Rise?

If we exclude the expected annual price increases, our Integrated Shield Plan premiums have not yet increased at the time of writing. However, we anticipate that prices will skyrocket in the near future. Why? Because our MediShield Life premiums increased in 2021 for the first time since the scheme’s inception in 2015. In short, you can expect your MediShield Life premium to rise by up to 35%. Additionally, MediShield Life only covers a smaller portion of some medical bills. And this means Integrated Shield Plan providers bear higher costs. As a result, Integrated Shield Plan policyholders will almost certainly have to pay more for their health insurance in the future. Keep an eye out for the premium hikes that may come your way in the future.

Why is there Insurance Premium Hikes in Singapore?

Premiums for Integrated Sheild Plan

We already know that MediShield premiums are skyrocketing, and Integrated Shield premiums are expected to follow suit. But no one knows the underlying cause for it. This is the point where no one seems to agree on a singular opinion. Some believe it is due to insured patients overclaiming, while others believe it is due to unethical doctors overcharging. Others point the finger at insurance companies for overpaying for commissions and management costs.

Doctors Charging Too Much or Patients Claiming More?

There are many kinds of rumors and myth surrounding the insurance market these. Some people think that insured patients seek out costly/unnecessary medical treatments just because they can claim anything. Whereas some unscrupulous doctors overcharge when they see an insured patient.

Are Insurers Overpaying for Commissions and Management Costs?

Experts suggest that insurers spend S$363 million per year on management and commission fees alone — a “significant recurring sum.” They used this opportunity to advocate for a less expensive and more efficient single-payer system to address two issues they see in the current system:

• Having too many IP insurers results in resource and cost duplication.
• Management and commission costs are increasing at a much faster rate than healthcare delivery costs.

More insurers are implementing doctor panels, but are they effective?

The issue of insurance panels is also a source of contention among SMA, LIA, doctors, and patients. Assume you are ill and want to see your family doctor for treatment. Your family doctor, on the other hand, is not on the list of panel doctors approved by your Integrated Shield Plan insurer. That means you have no guarantee that your medical expenses will be covered by your insurance company. So, before you buy insurance ensure you know about the premium hikes in Singapore and get a plan that suits your needs.

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