Health Insurance

23 Nov 2010

Question No:  141   

Question

Name of the Person: Mdm Ho Geok Choo

To ask the Minister for Health (a) whether Singaporeans are under-insured in health insurance and whether their Medisave and MediShield covers need to be complemented with an enhanced insurance cover; (b) what measures will the Ministry take to educate Singaporeans on the need for health insurance; and (c) what percentage of Singaporeans have health insurance and of these, how many are under-insured.

Reply

Reply From MOH

There are two health insurance products which are essential: MediShield to cover hospitalisation expenses and ElderShield to protect against the financial risk of severe disability.  For those who prefer higher ward classes and larger payouts, they should top up their basic MediShield and ElderShield with supplementary plans offered by private insurers.

For MediShield, the coverage is not bad.  90% of Singaporeans are protected with MediShield and the number is still growing. Among the MediShield policyholders, nearly 60% of them have topped up with a private supplementary plan which will enable them to seek treatment in Class A/B1 or private hospitals.  As most inpatients are admitted to Class B2/C wards, the level of coverage looks good.  However, we will continue to reach out to the uninsured to get them protected.  The two major groups of the uninsured are the young and the housewives.  We are making progress in getting them insured and we will press on with our efforts.

As for ElderShield, this product is still less understood.  Nevertheless, coverage has now exceeded 55%. At the per-cohort level, coverage is good at about 90%. We will continue to educate Singaporeans on ElderShield and encourage them to get themselves covered.  We will also further enhance the ElderShield benefits.  

Basically, for those who choose Class B2/C wards, basic MediShield should suffice.  But for those who prefer and can afford Class A/B1 or private hospital wards, they should top up with a private supplement. 

For ElderShield, the current payout of $400 per month for six years is just about adequate for the lower income group who qualify for heavy subsidies in nursing homes. For those who feel that the current payout is too low as compared to what they would need, they should top up their coverage with ElderShield Supplements provided by private insurers. About 14% of ElderShield policyholders currently do so but more Singaporeans should do likewise. 

Information on healthcare financing is readily available to the public and can be found from various sources. A good place to start would be the MOH and CPF Board websites. There, we have information on our 3Ms healthcare financing framework, including that on basic MediShield and ElderShield. There are also comparisons of the various Medisave-approved supplementary plans and the service performance of the insurers, e.g. claims processing time. Information pamphlets are also available in the hospitals and polyclinics.

We also work with various organisations to educate the public on health insurance. These include the MAS, the Life Insurance Association, the local media, the People’s Association and its grassroots organisations.  We will continue to reach out to Singaporeans to ensure that they are adequately insured against the financial risk of hospitalisation and severe disability.