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Addressing queries on out-of-pocket costs, regulatory oversight of private insurers, and more, the Health Minister affirmed the need for a long-term, balanced approach to ensure continued access to both private and public healthcare for Singaporeans, while keeping insurance sustainable.
In response to a series of parliamentary questions on the Integrated Shield Plan Rider Framework, Coordinating Minister for Social Policies and Minister for Health (MOH) Ong Ye Kung outlined key safeguards to protect patients from rising out-of-pocket costs, measures to support families facing high medical bills, and plans to monitor the impact on both private healthcare utilisation and public hospital waiting times.
Protecting patients from rising out-of-pocket costs
Minister Ong noted that the new rider requirements, effective for policies purchased from 27 November 2025, are designed to balance premium affordability with coverage for large, unexpected medical bills.
From 1 April 2026, new IP riders sold will no longer cover the minimum IP deductibles, and the co-payment cap will be set at a minimum of S$6,000. Singaporeans can expect premiums for new private hospital riders to be about 30% lower on average.
Acknowledging concerns about out-of-pocket costs, Minister Ong said the changes are designed to “preserve the protection against very large and unexpected medical bills, but disallow coverage of the minimum deductible,” noting that this sum is generally manageable for private hospital patients.
He explained that the revision is intended to restore health insurance to its original purpose: providing assurance against “large, infrequent, often unexpected healthcare bills,” rather than covering smaller, more routine expenses.
He reminded that the figures he discussed pertain specifically to private hospital patients, also noting that “their IP rider premiums have been driven up so high that under the new design, many can expect significant premium savings which can more or less offset the higher co-payment.”
"In short, the current design of IP riders may no longer make financial sense for many policyholders, and this change will help redress the situation," he added.
The Minister also shared projections on out-of-pocket payments: “We project that six in ten rider claimants should not have to pay cash out-of-pocket after MediSave. For the remaining four in ten, the majority of those with cash out-of-pocket would pay $1,000 or less, and practically all would pay $3,000 or less.”
Supporting families facing hefty medical bills
For families concerned about affordability, Minister Ong highlighted the importance of considering financial and healthcare needs when choosing care.
"Patients should consider their financial and healthcare needs when choosing where to seek care, including seeking subsidised care in public hospitals should affordability become an issue."
Access to private healthcare
The Health Minister emphasised that the shift from private to public hospitals has been ongoing for over a decade, driven primarily by escalating private healthcare costs rather than IP riders alone.
As he shared, this change is part of the Government's efforts to "mitigate the shift of patients from private to public healthcare." by creating a more sustainable path and ensuring private care remains accessible to Singaporeans in the long-haul.
Monitoring healthcare utilisation and waiting times
The Ministry of Health will monitor the number of new riders that choose to seek care at public hospitals to reduce their co-payment. Minister Ong affirmed that efforts to expand public health capacity, including hospital beds and outpatient services, are ongoing and will continue to meet the demands of Singapore's ageing population.
"If need be, we may need to implement surge capacity for selected treatments," he emphasised.
Regulatory oversight of private insurers
Minister Ong explained that MOH and the Monetary Authority of Singapore (MAS) collaborate to ensure IP insurers remain sustainable and protect policyholders’ interests. He highlighted that MOH’s key role is to oversee the development and operation of the public healthcare system and to ensure universal access to healthcare.
He said: “For individuals who prefer private healthcare and purchase private insurance, we should not micro-manage or prescribe the market practices.” Instead, the Ministry sets requirements on key parameters of IPs and riders, such as co-payment and deductible rules, “to ensure that the schemes are sustainable.”
He added that the Ministry only intervenes “when we see a serious market failure emerging,” which is why it stepped in this time to tighten the design of IP riders.
Ensuring sustainability of the new framework
The Health Minister also explained that the framework was guided by indicators including the unsustainable rise in private hospital premiums, which have grown 17% annually over the past three years, double the growth of MediShield Life premiums.
The changes aim to put private healthcare and insurance on a more sustainable path while preserving access for Singaporeans who prefer private care.
In summary, Minister Ong concluded that a long-term, balanced approach is needed to ensure Singaporeans continue to have access to both private and public healthcare while keeping insurance sustainable.
Lead image / MDDI YouTube
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