IP RIDER CHANGES AIMED AT RETAINING ORIGINAL PURPOSE OF PROTECTING PATIENTS AGAINST LARGE BILLS

We thank Mr Andrew Tan and Dr Chua Jun Jin for their letters “Increase co-payment only for policyholders who opt for private healthcare” and “Let healthcare insurance policyholders choose to keep older riders” (both Nov 28).

Mr Tan suggested that the recently announced changes – the increase in co-payment for Integrated Shield Plan (IP) riders – should target only private healthcare. We agree with Mr Tan. In fact, this is precisely the focus of the changes, as the majority of IP rider policyholders are on private hospital plans. 

Those who seek care in subsidised public hospitals incur smaller bills, with little or no out-of-pocket payment, and generally do not need IP riders. 

On Dr Chua’s suggestion to allow existing policyholders to keep their IP riders, we would like to clarify that the Ministry of Health’s new requirements apply only to new IP riders sold on or after Nov 27, 2025. For existing policyholders, individual insurers will further study and determine their own approach.

The changes revert private insurance to its original purpose of protecting patients against large bills. The deductibles and co-payment are smaller amounts, and can also be covered by MediSave.

As a result of this move, IP rider premiums will be lowered by around 30 per cent on average. This is not an insignificant amount of savings, as annual premiums can reach up to $9,000 for a rider policyholder aged 70, and even higher when they get older. Private hospital rider premiums have been growing at 17 per cent per year in recent years, and about 100,000 rider policyholders cancel or downgrade their IP rider policies every year, which indicate that many find their plans unaffordable.

These changes are therefore necessary to ensure that private insurance is sustainable and is restored to its original purpose of protecting patients against large bills. All stakeholders, including hospitals, doctors, insurers and consumers, will need to continue to play their part towards our common goal of keeping healthcare costs and health insurance affordable for Singaporeans.

Sarah Leong
Director, Finance Partnerships and Governance
Ministry of Health