Enhanced Medical Insurance Coverage For S Pass And Work Permit Holders In Singapore
From July 2023, employers of S Pass and Work Permit holders, including domestic helpers, are required to provide increased medical insurance coverage with an annual claim limit of at least SGD $60,000. The goal is to assist employers in covering higher medical expenses and minimising out-of-pocket payments amid rising medical costs.
In this article, our friends at Pacific Prime Singapore explain the new requirements and why they’re needed. They’ll also tell how the new measures will simplify the lives of employers.
New Requirements to Take Effect in July 2023
The health insurance coverage’s minimum annual claim limit for S Pass and Work Permit holders, including domestic helpers, will rise from SGD $15,000 to SGD $60,000 beginning from July 2023. The insurance expenses cannot be deducted from the workers’ wages.
Singapore’s Ministry of Manpower (MOM) has stated that more than 5% of medical bills incurred by foreign workers surpass the present coverage threshold of SGD $15,000. The MOM further estimated that the new coverage limit will be sufficient for over 99% of hospitalisation and surgery bills.
Furthermore, the new regulations make it necessary for employers to bear 25% of the claim amount above the first SGD $15,000. That means, for example, if a worker’s medical bill for surgery amounts to SGD $55,000, the employer will have to pay SGD $10,000 (25% of SGD $40,000). The remaining SGD $45,000 will be paid for by the insurer.
New Measures to Kick In from July 2025
Effective from July 2025, employers will no longer have to pay for their workers’ medical treatment out of pocket and then file a reimbursement claim with insurers. Rather, insurers will be required to directly pay hospitals.
Insurers must also offer distinct premiums for workers aged 50 years and below, as well as those above 50. This is to make sure that employers of younger workers can afford the insurance premiums.
Premium differentiation will also benefit older workers since insurers will be motivated to create plans satisfying their needs more effectively. The MOM has mandated that these policy adjustments will be gradually phased in to enable employers and insurers to adapt more easily.
A standardised list of acceptable exemptions for insurers will be published, which will include procedures that are deemed medically unnecessary, such as cosmetic surgery. Furthermore, insurers will not have to provide coverage for pre-existing illnesses that manifest within the first year of employment with an employer.
Further Implementation Details
These new measures will apply to all new policies and policy renewals that begin on or after the respective implementation date. Therefore, an existing policy with an annual claim limit of SGD $15,000 and expiring on December 31, 2023 will continue to be valid until that date. However, its renewal policy, starting from January 1, 2024, must have an annual claim limit of SGD $60,000 or more.
The MOM added that numerous insurers have already expressed interest in providing enhanced medical insurance products, resulting in a highly competitive market with a wide range of options for employers to choose from.
Contact Pacific Prime Singapore to explore your options today!
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So, contact them for a FREE plan comparison today!