New IP rider rules could lower premiums despite rising private healthcare costs, MOH says

Policyholders switching to the new rider framework could save 35% to 40% on premiums, even as private hospital Integrated Shield Plan costs continue to rise.

Singapore’s rising healthcare costs and increasing insurance premiums came under scrutiny in Parliament, as Members of Parliament (MPs) raised concerns over higher Integrated Shield Plan (IP) premiums, claims handling practices, and insurer transparency.

The questions were raised by Yip Hon Weng, MP for Yio Chu Kang, and Dr Hamid Razak, MP for West Coast – Jurong West GRC.

The MPs asked whether the Ministry of Health (MOH) was aware that insurers intended to increase base IP premiums alongside the required changes to IP rider specifications which took effect on 1 April 2026, and whether these increases would offset savings from the revised rider framework.

Questions were also raised on how MOH addresses insurers that increase base premiums, what safeguards are in place to prevent unreasonable claims rejections, and whether greater transparency in premium calculations or penalties for unjustifiable price hikes would be introduced.

Responding to the questions together, Rahayu Mahzam, Minister of State, Ministry of Health said IP insurers review premiums every year.

Between December 2021 and December 2024, private hospital IP premiums increased by an average of 8.6% annually, while private hospital rider premiums rose by an average of 17.2% annually.

In line with these trends, some private hospital IP and rider plans were recently repriced.

However, she noted that policyholders who switch to the new riders introduced under the revised framework can save an average of 35% to 40% in premiums.

Referencing earlier parliamentary responses delivered during the 24 September 2025 sitting, MOS Rahayu reiterated that the Government’s role is to "ensure affordable, accessible, and quality subsidised healthcare for Singaporeans", with MediShield Life serving as the foundation for coverage against large hospital bills.

She added: "IPs and riders are private, commercial products that supplement MediShield Life coverage for unsubsidised healthcare. While MOH regulates the key parameters of IPs, such as the co-payment and deductible, to ensure that the schemes are sustainable, MOH’s general practice is not to intervene in insurers’ commercial decisions such as the setting of premiums."

Addressing concerns over claims management, the MOS said both MOH and the Monetary Authority of Singapore (MAS) require insurers to process claims fairly and uphold their contractual obligations.

Under MAS insurance regulations, insurers must notify policyholders of any changes to policy terms and conditions at least 30 days before the changes take effect.

For disputes involving specific claims, policyholders can approach the Financial Industry Disputes Resolution Centre (FIDReC), an independent institution that assists with insurance-related disputes.

The Ministry added that MAS may take action against insurers that fail to pay claims according to policy terms and conditions or engage in unfair claims handling practices.

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Lead image / Screenshot of MOS Rahayu's speech in Parliament on 6 May 2026, MDDI Singapore YouTube