Publication of Service Indicators for Medisave-Approved Integrated Insurance Plans

15 Aug 2006

The MediShield reform was implemented on 1 July 2005 in order to better meet the health insurance needs of Singaporeans. A key objective of the reform was to provide better financial protection against large hospital bills. Due to the adjustments made to deductibles and claim limits, the reformed MediShield pays for a larger fraction of hospital bills above $3,000.

Another key objective of the reform was to promote a competitive insurance market, so as to allow Singaporeans to purchase private insurance according to their needs and preferences at competitive premium rates. Five private insurers now offer 18 Medisave-approved integrated insurance plans that build upon basic MediShield to provide more coverage, such as hospital stays in Class A/B1 wards and private hospitals.

A comparison of benefits and premiums of integrated plans has been published on MOH's website since the MediShield reform was implemented. This has helped policy holders to compare the different integrated plans and purchase the most appropriate plans according to their individual needs.

In order to further support consumer choice and enhance market competition, MOH will publish three additional service indicators for Integrated Plans on the MOH website, on a quarterly basis starting 15th August 2006.

First, we will publish information related to the claims return rate. This will allow customers to know how long each insurer takes to process claims and encourage insurers to process claims more expediently.

Second, MOH will publish information on the provision of letter of guarantee by insurers. MediShield and integrated plans work on a reimbursement basis where patients pay for their hospital bills upfront and are subsequently reimbursed after their claims are approved. The letter of guarantee is provided by insurers to hospitals and reduces the amount that patients have to pay upfront, thus alleviating the financial burden on patients.

Third, we will publish information on whether each insurer absorbs the costs of obtaining medical records needed for claims assessment. Medical records usually cost between $75 and $250 and some insurers require claimants to pay for such charges. Consumers should be informed of such requirements.

Refer to the webpage on Medisave-Approved Integrated Insurance Plans for more information.

Together, the three service indicators will inform consumers of the service standards and service management practices of insurers who offer integrated plans. In addition to service indicators, we are also evaluating the feasibility of publishing financial indicators of insurance plans so as to inform the public of the price competitiveness of Integrated Plans.

The publication of insurance indicators will enable Singaporeans to make better-informed choices when purchasing insurance, and enhance market competition in the insurance industry.