SINGAPORE — In a recent parliamentary session, Minister of State for Health Rahayu Mahzam addressed the pressing concerns surrounding Integrated Shield Plans (IPs) and their portability. She asserted that mandating full portability is not the suitable solution to the challenges faced by policyholders.
Updated Feasibility Study Findings
According to Rahayu, the Ministry of Health (MOH) concluded that allowing policyholders to switch insurers without restrictions might lead to increased premiums and overall healthcare costs. She highlighted this in response to a question from Member of Parliament Dr Tan Wu Meng (PAP-Jurong), discussing a study that has been in progress since 2021.
International Comparisons
- Countries like the Netherlands and Switzerland mandate universal coverage but allow limited portability for supplemental insurance.
- Australia’s health insurance model also allows full portability, driven by the need for strong private healthcare access.
Rahayu noted that in these examples, full portability is often accompanied by a risk equalisation fund to manage the financial implications of transferring high-risk policyholders between insurers. This system usually requires significant national resources to administer.
Key Concerns Raised
The minister explained that IP portability may not resolve the challenges faced by those with pre-existing conditions. The real issue might stem from a lack of competition rather than the lack of options, as insurers tend to be cautious about this group due to the higher likelihood of claim payouts.
Government Initiatives
To reassure policyholders, the government has established MediShield Life, which ensures coverage for pre-existing conditions. Enhancements to this national health insurance scheme are set to roll out progressively from April 2025.
Maintaining Affordable Healthcare
Ultimately, Rahayu remarked that the best approach to tackle policyholder concerns is through managing healthcare costs effectively. MOH remains committed to ensuring access to quality and affordable healthcare for all Singaporeans.