Health
Drop in private hospital Integrated Shield Plans due to rising premiums
It has been reported that the number of Singaporeans with private hospital Integrated Shield Plans (IPs) has decreased, especially among older adults, due to rising premiums. Between 2020 and 2023, 2.2% of people over 60 gave up their IPs. Health Minister Ong Ye Kung warned against escalating healthcare costs driving higher premiums.
The number of Singaporeans and permanent residents with private hospital Integrated Shield Plans (IPs) has declined, as has the proportion of older people with any type of IPs, according to a report by The Straits Times based on data from the Ministry of Health (MOH).
The proportion of individuals with the highest tier of IPs, which covers treatment in private hospitals, fell by 5 per cent – from 40 per cent in 2021 to 38 per cent in 2023. Additionally, between 2020 and 2023, 2.2 per cent of people over the age of 60 gave up their IPs and reverted to the basic MediShield Life.
These individuals, who were previously paying higher premiums for IPs that cover public hospital treatment as private patients, likely opted out due to soaring premiums and the inadequacy of MediSave to cover the annual payments. The MOH stated that the proportion of people with private hospital IPs in the age group above 60 was significantly lower compared to other age groups.
MediShield Life covers subsidised treatment at public hospitals, while additional IP coverage allows for private care. Currently, more than 70 per cent of the population has opted for additional IP coverage. There are three tiers of IPs: the top tier for private hospitals, and the second and third tiers for public hospitals in A and B1 classes, respectively, where patients can choose their attending doctors.
IP premiums, paid annually with MediSave up to an age-based cap, increase with age and rise faster in later years when expensive hospital treatments are more likely. Depending on the insurer and plan, premiums can exceed $10,000 a year for those aged 80 to 90, with cash payments often starting around the age of 60.
As premiums escalate, many older individuals reassess their IP choices. Over a lifetime of 100 years, the most expensive IP could cost a person $323,900, according to MOH data. Despite some older individuals giving up their IPs, younger people are increasingly opting for them, with a 1.1 per cent rise in IPs sold to those aged 60 and younger between 2020 and 2023.
Health Minister Ong Ye Kung recently highlighted the issue of escalating healthcare costs, warning against overly generous claims reimbursements that lead to higher diagnostic tests and treatments, subsequently driving up premiums for everyone. Despite the high premiums, Mr Ong noted that about half of patients with IP and rider protection still use subsidised public healthcare when hospitalised or undergoing day surgery. These patients, he suggested, could have saved on premiums by relying solely on MediShield Life.
Senior Minister Lee Hsien Loong echoed this sentiment, cautioning against the pitfalls of insurance-fueled runaway healthcare costs. He emphasized the need for a balanced approach involving government subsidies, medical insurance, and individual co-payment to prevent unsatisfactory outcomes driven by wrong or perverse incentives.
As premiums increase with age, the trend of downgrading IPs, unless ongoing medical treatment is required, appears to be a growing reality for many older Singaporeans.
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All this insurance are scam as the company can change the term & condition as & when required to suit their needs. Still remember previously when they sold insurance & promise you high projected returns as a marketing gimmicks till a time when they couldn’t even meet anything close & started to change the T&C. If changes were needed, shouldn’t it only affect new policy rather than all the old one too? The Pappy clowns now mention that to curb runaway healthcare cost, individual co-payment is needed. I thought it was Hari Kiri Master Khaw who came up with those… Read more »
I use my Medisave in Integrated Shield Plan, rather than in Medishield Life
Coz the latter one is a (legalised) scam!
This is again another indication and another clear example where things are done NOT right under the Loong administration over the past 20-odd years – many things are just short-term implements to boast someone’s trophy shelf. Lots of excuses, lots of wayang, lots of kelong, lots of No Blaming Cultures, lots of BS, lots of “It is the Free Riders fault”, lots of shortcuts taking. Now conveniently handed over to lawlanWong to settle. No wonder HSK politely refused to take over, citing “insufficient runway” – smart guy, even though he’s pappie throughout, gotta respect him for that decision.
CPF Life and MediShield Life were Ah Loong’s pet project, promising us healthcare and payout for LIFE after retirement. Which sounded nice but there are NO CLAUSES nor SAFEGUARDS limiting the increase in premiums – meaning they can just keep increasing the premiums arbitrarily to meet that promise of life support. Effectively a blank cheque policy. It had been highlighted that he can promise this and promise that for life-long, but WHO CAN GUARANTEE that for the next 10, 20, 30 years? It looks UNSUSTAINABLE once the unregulated premiums increase to levels where ppl cannot afford it. The burden is… Read more »
The Gov can help by giving more subsidies or twist the arms of insurers.
Instead of CDC vouchers, reduce cost for hospital treatments.
But they wont do it because the voters will hardly feel it.
Giving vouchers is something that voters can see and use immediately.
We know how lucrative the insurance biz is. Recall that by 2017 $3.3 bn was collected in premiums for Eldershield but a paltry $133 mil was paid out in claims. Now, what happened to the estimated $3.2bn “profits”? And insurance companies make unilateral decisions even against those who had been paying premiums for years eg my sister has now a co-payment of 10% for a policy that previously was 100% claimable. And this policy was probably bought 30 to 40 years ago. And this 10% cash outlay is a burden due to her age and with no income stream. There… Read more »
Insurers are legalised scammers, con artists.
The politicians are bedfellows.
Remove insurers and the financial system will be shaky…
As more and more can afford less and less, … there’s no end in sight in the escalation of costs and reduction of benefits for just about everything on the island. For those with blind faith, blissful ignorance and brainless loyalty to the regime whom they’ve believed in, .. to safeguard their existence, their healthcare and their future, .. and the assurance that they’d not be abandoned or left behind, … will be waking up to a trifecta reality of, .. empty promises, meaningless words and piss poor policies !!! With the GE fast approaching, let’s all look forward to… Read more »
It’s all those greedy Specialists and Doctors and the equally greedy big corporate owners wanting more and more money from the sick and those needing healthcare.
Something has to be done to curb these excessive greeds then we can probably see more stable premiums. It has been going up in steep curve last 5 to 6 years