Premiums in top-up portion of Integrated Shield Plans will not increase for one year
The Straits Times
SINGAPORE - Premiums in the top-up portion of the Integrated Shield Plan for ward classes B1 and A in public hospitals will not increase for a year after MediShield Life is implemented, the Life Insurance Association (LIA) said on Wednesday.
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LIA president Dr Khoo Kah Siang said that the five Integrated Shield Plan (IP) insurers are committed to not increase the top-up portion of IP premiums for plans covering Class B1 and A wards of public hospitals for this period.
"This will allow for a smooth transition as all renewals of these IPs during the one-year period will see no increase in the premiums for the top-up portion," he said.
"Thereafter, IP insurers will re-evaluate and re-assess plans based on actual experience e.g. claims, to ensure that top-up benefits remain relevant in meeting the evolving needs of Singapore residents."
Current Class B1 plans are subject to review - including the top-up premiums - in consultation with the Ministry of Health (MOH) and other relevant authorities as part of deliberations to develop key features for a standardised IP focused on Class B1 coverage, he said, adding that the ongoing review is to ensure IPs remain relevant and financially viable.
"This commitment is based on the assumption that there is no significant change to the regulatory and competitive environment," Dr Khoo said.
He noted that for plans covering private hospitals, IP insurers will take into account the effect of MediShield Life benefit enhancements, in addition to other important factors including past claims experience, projected future medical inflation rate and claims usage.
"IP insurers will actively engage with policy-makers such as MOH, the healthcare industry and relevant organisations to combat medical inflation and better manage costs," he said.