Ask insurers for Letter of Guarantee

26 Jul 2007, The Straits Times

Question

Name of the Person: Tan Siew Ko (Ms)

Have all insurers issue Letter of Guarantee

I REFER to the recent letters on the requirement by hospitals to pay a deposit before they would accept patients for treatment, despite their having medical insurance.

I, too, wrote to the Forum last August to seek clarification from the Ministry of Health (MOH)/insurers as to why only one - NTUC Income - out of the many Medisave-approved insurers provides a Letter of Guarantee.

Although MOH had replied that it, too, recognised that the Letter of Guarantee could reduce the financial burden of patients, I am disappointed and puzzled as to why it did not make the Letter of Guarantee a requirement for all insurers of Medisave-approved shield plans to adhere to, knowing full well that the majority of Singaporeans and permanent residents are on such plans and could benefit greatly.

If the MediShield or Medisave-approved plans are meant to provide financial support in the event of potentially costly medical bills, why should the insured still have to cough up a large amount as cash deposit prior to admission to restructured government hospitals for non-emergency or emergency treatment?

Could MOH or the insurers enlighten us?

Reply

Reply from MOH 

Ms Tan Siew Ko proposed that we "Have all insurers issue Letter of Guarantee" (ST, 18 July).

We agree that insurers' providing a Letter of Guarantee for their policyholders will be a good move.  This will facilitate hospital admission and avoid the need for the policyholders to place a cash deposit. 

Currently NTUC Income provides such a service for its policyholders.  We will continue to encourage the other insurers to follow suit.  It will help if policyholders too demand such a service from their insurers.