Last week, it was announced that there are new rules to include Co-Payment even for those that have full rider hospitalisation plan. This will change the financial planning landscape in your journey with money. Insurers in Singapore will no longer be able to offer full rider coverage in this light. This is because of high medical inflation in Singapore over the last few years.
Why is there a need to change?
Having full coverage leads to “Buffet Syndrome”. Because the bills are “already paid for”, there is a strong tendency for over consumption (Just like in a buffet). The below is an example quoted from Channel News Asia.
“In one case, a full rider policyholder made claims for 12 nose scopes in a year, without clear medical need, and another policyholder who underwent an expensive surgery for a small breast lump removal that cost S$70,000 in doctor fees alone, when there was an equally effective alternative procedure at S$5,000.”
This over consumption has lead to rider premiums increasing over 200% in the last 2 years.
What are the changes:
A minimum of 5% co-payment for new Integrated Shield Plan riders will be imposed. There is also a cap in the co-payment amount each year. Insurers must place an annual cap with a minimum of $3,000*
What will happen to my policy:
For policies are bought before (8 March 2018) the news: No change until further notice.
For policies that are bought now until end March 2019: No changes until 1 April 2021.
For policies bought later: All new riders will be subjected to at least 5% co-payment with a minimum co-payment cap of $3,000.
If you are unsure of the changes for your policy, please contact your financial services consultant or comment in the section below.
We wish you all the best in your journey with money.
*There no co-insurance cap if treatment is neither from insurer’s preferred healthcare provider nor pre-authorised.
**This information might have changed by the time you visit this site. Please contact your financial services consultant for the most updated information regarding this change.