SINGAPORE: The Ministry of Health (MOH) may need to implement surge capacity for selected treatments if more people turn to public hospitals for subsidised healthcare resulting from changes to private health insurance, said Minister for Health Ong Ye Kung on Monday (Jan 12).
Surge capacity refers to a healthcare system's ability to handle a sudden increase in demand beyond normal operational levels.
Singapore recently implemented changes to Integrated Shield Plan (IP) riders to stem a growing exodus of patients from private to subsidised healthcare.
Riders are optional add-ons that cover part of the deductible and co-insurance of a patient's Integrated Shield Plan.
MOH announced last November that new riders will no longer be allowed to cover the minimum plan deductibles from Apr 1.
Currently, policyholders with riders must co-pay at least 5 per cent of their bills, with insurers setting a co-payment cap of no less than S$3,000 (US$2,300) per year. This cap will be raised to a minimum of S$6,000 per year for riders sold from April 2026.
Several Members of Parliament have expressed concerns that those on new riders may choose to seek care at public hospitals to reduce what they need to co-pay, said Mr Ong on Monday.
The government will monitor this closely, and efforts to expand public health capacity are already ongoing, he added.
“If need be, we may need to implement surge capacity for selected treatments,” said Mr Ong.
Over the last 10 to 15 years, the shift from private healthcare to public healthcare has been “very discernible”, and the rising cost of private hospital treatment is a key reason, said the health minister.
In particular, IP riders are fuelling this cost increase, he added.
“It will help the entire system, and in particular the public healthcare system, if more of them who can afford it stay with private hospital care,” said Mr Ong.
“And so private hospital care has to become more accessible, more affordable, but we cannot do that without this adjustment in IP rider policy.”
MOH and the Monetary Authority of Singapore work closely together to exercise regulatory oversight of IP insurers to ensure that policyholders’ interests are protected and that the products are sustainable, said the minister.
The Health Ministry’s key role is to oversee the development and operation of Singapore’s public healthcare system.
“For individuals who prefer private healthcare and purchase private insurance, we should not micromanage or prescribe the market practices,” said Mr Ong, adding that MOH instead sets requirements for key parameters.
“We only step in when we see a serious market failure emerging, which is why we have intervened in this case to tighten the design of IP riders.”
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Surge capacity refers to a healthcare system's ability to handle a sudden increase in demand beyond normal operational levels.
Singapore recently implemented changes to Integrated Shield Plan (IP) riders to stem a growing exodus of patients from private to subsidised healthcare.
Riders are optional add-ons that cover part of the deductible and co-insurance of a patient's Integrated Shield Plan.
MOH announced last November that new riders will no longer be allowed to cover the minimum plan deductibles from Apr 1.
Currently, policyholders with riders must co-pay at least 5 per cent of their bills, with insurers setting a co-payment cap of no less than S$3,000 (US$2,300) per year. This cap will be raised to a minimum of S$6,000 per year for riders sold from April 2026.
Several Members of Parliament have expressed concerns that those on new riders may choose to seek care at public hospitals to reduce what they need to co-pay, said Mr Ong on Monday.
The government will monitor this closely, and efforts to expand public health capacity are already ongoing, he added.
“If need be, we may need to implement surge capacity for selected treatments,” said Mr Ong.
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Over the last 10 to 15 years, the shift from private healthcare to public healthcare has been “very discernible”, and the rising cost of private hospital treatment is a key reason, said the health minister.
In particular, IP riders are fuelling this cost increase, he added.
“It will help the entire system, and in particular the public healthcare system, if more of them who can afford it stay with private hospital care,” said Mr Ong.
“And so private hospital care has to become more accessible, more affordable, but we cannot do that without this adjustment in IP rider policy.”
MOH and the Monetary Authority of Singapore work closely together to exercise regulatory oversight of IP insurers to ensure that policyholders’ interests are protected and that the products are sustainable, said the minister.
The Health Ministry’s key role is to oversee the development and operation of Singapore’s public healthcare system.
“For individuals who prefer private healthcare and purchase private insurance, we should not micromanage or prescribe the market practices,” said Mr Ong, adding that MOH instead sets requirements for key parameters.
“We only step in when we see a serious market failure emerging, which is why we have intervened in this case to tighten the design of IP riders.”
Continue reading...