A standard, no-frills, medical insurance policy pegged at the private B1 class in public hospitals will be available with effect from 1 May, said the Life Insurance Association Singapore (LIA Singapore).
The policy, called Standard Integrated Shield Plan (Standard IP), will be sold by five IP insurers: AIA, Aviva, Great Eastern Life, NTUC Income and Prudential Assurance.
The product, developed to offer affordable coverage with identical benefits across all IP insurers, has co-payment features and does not include pre- and post- hospitalisation coverage which are examples of benefits offered by private insurers via other non-Standard IPs available in the market which offer benefits up to private hospitals.
There will be variances in the premium rates of the Standard IPs. Each IP insurer takes into account the company’s estimation of claims and expenses, risk management policies and other relevant factors.
Claims limits for Standard IPs fully cover nine out of 10 Class B1 bills, namely up to the 90th percentile. The premiums for standard IPs will remain unchanged for two years from 1 May 2016, while premiums for non-standard IPs’ main top up component remain unchanged for a year from 1 November 2015.
In a statement, Dr Khoo Kah Siang, President of LIA Singapore, referred to the Standard IP: “We believe that it will appeal to two groups: Individuals seeking additional coverage to complement MediShield Life, and those looking to downsize from their existing private plans.”
Since 1 November last year, 3.9 million people, or all Singaporeans and permanent residents, have been covered by MediShield Life scheme, a national health insurance scheme that provides lifelong protection against large medical bills. MediShield Life provides coverage sufficient for medical care at Classes B2 and C wards, which are the lowest-priced of the four ward classes in Singapore's public hospitals. They rank after B1 and A wards. The IPs supplement MediShield Life.
LIA Singapore says that an on-going top priority for it is to work on achieving more effective management of rising healthcare costs in order to keep health insurance affordable.