SINGAPORE – Private insurers are supportive of the new rider requirements that will see patients bear a larger portion of hospital bills, and say that those who intend to switch to new riders in 2026 can do so without additional underwriting. <\/p>\n
On Nov 26, the Ministry of Health (MOH) announced that new riders sold from April 1, 2026, will <\/p>\n no longer be allowed to cover the minimum deductibles<\/p>\n <\/a> patients have to pay before insurance kicks in.<\/p>\n In addition, those on the new riders would need to pay a larger portion of their bills, as the co-payment cap will be doubled to $6,000.<\/p>\n As a result, rider premiums are expected to go down significantly. <\/p>\n So, while patients will pay more when they have to go to the hospital, this will generally be offset by lower premiums each year, so they end up paying less overall. <\/p>\n Mr Chan Wai Kit, executive director of the Life Insurance Association Singapore (LIA), said the industry supports MOH\u2019s initiative, which aims to \u201cmanage rising claims costs and ensure the long-term sustainability of Singapore\u2019s health insurance portfolio\u201d. <\/p>\n LIA is the trade association for life insurance product providers and life reinsurance providers.<\/p>\n He added that IP insurers will facilitate a transition to the new riders without additional underwriting for new rider buyers coming on board before April 2026.<\/p>\n Existing rider policyholders, or those who intend to upgrade or downgrade their riders during this transition period, will also be able to switch to new riders without additional underwriting. <\/p>\n Underwriting refers to the insurer\u2019s assessment of an applicant\u2019s risk profile, which will be used to determine the premiums payable and scope of coverage. In certain cases, insurers may include new exclusion clauses or even reject the application. <\/p>\n LIA encouraged policyholders to proactively consult their financial advisers to review their existing insurance coverage and to ensure their plans continue to align with their long-term healthcare needs and budgets.<\/p>\n Seven years ago, when MOH <\/p>\n imposed the 5 per cent co-payment requirement<\/p>\n <\/a>, it did so only for new riders sold from March 2018. <\/p>\n Nevertheless, Integrated Shield Plan (IP) insurers subsequently adjusted their older riders to incorporate the co-payment requirement.<\/p>\n MOH\u2019s latest requirements will similarly be imposed only on new riders, and the decision on what will happen to existing riders, which are commercial contracts between insurers and their policyholders, is left to the insurers to decide.<\/p>\n The Straits Times reached out to all seven IP insurers that sell riders on top of IPs, and asked for their plans regarding the existing rider products.<\/p>\n None of the insurers could confirm detailed plans at present.<\/p>\n AIA chief marketing and healthcare officer Irma Hadikusuma said if there are any changes to the coverage of its IP riders, AIA will notify its policyholders at least 31 days in advance, to ensure they have ample time to prepare and make informed decisions about their coverage.<\/p>\n A spokeswoman for Great Eastern said existing rider policyholders will continue to enjoy the benefits under their current plans, and can choose to switch to the new riders at any time after the products are launched. <\/p>\n HSBC Life chief health officer Manu Tandon said HSBC will continue to assess the rider plan and provide existing policyholders with advance notice on any policy changes.<\/p>\n Emphasing that there is no immediate impact on existing riders, Income Insurance chief customer officer Dhiren Amin said the company will continue to assess if changes would be needed to keep the healthcare insurance sustainable for its policyholders, and will inform them of policy changes.<\/p>\n Echoing LIA\u2019s call for policyholders to discuss insurance coverage with their financial advisers, Dr Sidharth Kachroo, Prudential\u2019s chief health officer, said existing rider policyholders can still choose to retain the current rider, or switch to any existing Prudential rider.<\/p>\n Raffles Health Insurance (RHI) is currently assessing the situation and will update policyholders in due course. <\/p>\n \u201cAn important part of the assessment is the affordability of private healthcare insurance over the longer term for policyholders, to ensure they have the appropriate coverage when it is required\u201d, said RHI general manager Ben Siah.<\/p>\n Ms Helen Shen, group head of products for Singlife, said the company understands that some policyholders may be worried about their coverage, and that it is committed to being transparent about any changes.<\/p>\n \u201cWe will update with more details on our new product after careful study of the requirements and the impact they will have on policyholders\u201d, she said.<\/p>\n Currently, a 40-year-old policyholder has to pay around $3,400 in premiums each year for a private hospital IP and rider, and a 60-year-old policyholder pays about $9,500 each year.<\/p>\n MOH has observed that the number of people with riders declines with age and that older age groups are less likely to have riders. <\/p>\n A similar phenomenon has been observed for IP ownership.<\/p>\n <\/a><\/p>\n With premiums of new riders expected to be 30 per cent lower compared with existing highest-tier riders, more rider policyholders might decide to switch to the new riders, which would mean IP insurers could collect less in premiums.<\/p>\n Mr Alex Lee, president of the Singapore Actuarial Society, however, believes that more policyholders switching to new riders need not necessarily mean more losses for the insurers, if they also see a corresponding decline in claims payouts.<\/p>\n He added that looking at the trends of how IP and rider premiums have risen in recent years, it would seem that getting people to pay \u201csome meaningful amount of healthcare cost out of pocket\u201d does seem to influence consumers\u2019 choices of where they seek treatment and what services they consume, which in turn helps to control healthcare costs.<\/p>\n Hence, the requirement for riders not to cover the minimum IP deductibles should, in the medium to long term, help dampen cost increases in the private sector, said Mr Lee. <\/p>\n<\/div>\n<\/picture><\/div>\n<\/figure>\n