Making Integrated Shield Plans fully portable not the right solution for policyholders’ concerns: Rahayu

According to Minister of State for Health Rahayu Mahzam, requiring full portability of integrated shield plans ( IPs ) is not the best way to address the issues policyholders face, according to a statement made in parliament on Tuesday ( Nov 12 ).

In response to a parliamentary question from PAP-Jurong Member of Parliament Tan Wu Meng ( PAP-Jurong ), who wanted an update on the ministry’s feasibility study, Mdm Rahayu responded that this is not considered to be international best practice.

Private insurers provide additional health insurance in addition to Singapore’s national health insurance plan, MediShield Life. This usually includes remains in private or A- or B1-type rooms in public or private hospitals.

There have been calls for the transfer of IPs or the ability for policyholders to move health insurers at different levels.

The Ministry of Health ( MOH) first made a study available in 2021 to address the concerns of consumers who want to switch carriers for better advantages or competitive premiums but have pre-existing conditions as barriers to switching.

WHAT’S BEING Completed Foreigners

Mdm Rahayu noted that Internet portability is “generally unusual across the world” and that MOH has examined the issue and arrangements in other countries before reaching its conclusions.

She noted that putting more consumers with pre-existing problems in their danger share is “usual exercise” for carriers to underwrite new policies.

Insurance is, however, result in carriers imposing further conditions on the policyholder’s policy, such as exclusions to the cover. Due to the higher threats, consumers may also have to spend higher rates.

It is “typically a function limited to their necessary, national health insurance” for countries that permit full portability, where policyholders can switch insurers without insurance.

For instance in Netherlands or Switzerland, universal policy is mandated but administered by private insurers. Any student must be accepted by personal insurers, regardless of whether they are switching from another underwriter or already uninsured, she continued.

According to Mdm Rahayu,” This gives the impression that business insurance is convenient, but it is not because the basic coverage under the general national health insurance scheme is completely portable,” adding that these two nations likewise have supplemental, private insurance that requires underwriting and is not transferable.