KUALA LUMPUR – More retirees and individuals above 60 in Singapore are expected to downgrade their private health insurance as premiums for Integrated Shield Plans (IPs) rise next month.
The hike follows an increase in MediShield Life premiums, which could rise by up to 35% over three years. However, most Singaporeans will have these increases offset by government support measures, CNA reported.
Currently, 70% of residents are on IPs, which provide additional private coverage on top of MediShield Life, the national health insurance scheme. Between 2020 and 2023, 2.2% of those over 60 dropped their IPs, while IP ownership among younger individuals rose by 1.1%. The number of private hospital IP holders also declined by 5% between 2021 and 2023.
MOH has urged residents to evaluate their insurance needs holistically, factoring in care preferences, desired coverage, and long-term affordability.
For retired audit director Abdul Hamid Abdullah, the upcoming changes mean he could pay S$200 (US$150) more in MediShield Life premiums, bringing his total to S$1,300.
However, the 69-year-old told CNA he is “not too concerned” as he receives medical benefits under the government’s civil service card (CSC). Nevertheless, he acknowledged that as he ages, his healthcare needs could increase.
“Health is the most important thing on my mind … because I’m already suffering from a number of chronic diseases,” he said, listing heart disease, diabetes, and high cholesterol as concerns.
“I just wish that whatever illnesses and diseases that I may face in my golden years … it is covered,” he added.
Impact of MediShield Life premium hike
The changes will expand coverage, with claim limits increasing by S$50,000 to S$200,000, said Eddy Cheong, CEO of insurance firm Havend.
“It also means taking care of high-cost drug treatments, as well as advanced treatments like cell tissue, gene therapy products,” he said. However, “with all this higher increase in benefits, that will translate to higher premiums.”
Deductibles, currently between S$1,500 and S$3,000, may rise by another S$1,500 in two years. A new outpatient deductible of S$500 per year will take effect on January 1, 2026.
To mitigate the financial impact, the government has announced a S$4.1 billion support package, including S$3.4 billion in MediSave top-ups and S$0.7 billion in premium subsidies. MOH stated that over 90% of Singaporeans will have their additional premiums “more than offset.”
Concerns over rising IP premiums
Despite support, concerns persist that insurers may raise IP premiums further in response to medical inflation and higher claims.
Cheong noted that rising costs are making Class A wards or private hospitals unaffordable, especially for seniors no longer working. He suggested resizing benefits to keep plans affordable.
Health Minister Ong Ye Kung has warned that rising claims contribute to an unhealthy “buffet syndrome,” increasing costs. The Life Insurance Association assured that IP providers work with MOH to manage inappropriate claims.
While four insurers declined to comment, AIA Singapore said it introduced rider options to maintain steady premiums. Prudential Singapore encouraged policyholders to seek treatment at partner hospitals for lower renewal premiums, while Great Eastern adjusted factors for its Class A and B1 IP plans to better reflect cost differences.
“As Singapore’s healthcare needs evolve, we will continue to manage these shifts and work closely with stakeholders to ensure our policyholders receive the protection and peace of mind they need,” said a Great Eastern spokesperson.
Malaysia faces similar challenges
Malaysia is experiencing parallel concerns, with rising private healthcare costs and medical insurance premiums sparking debate. In February, participants at a Public Accounts Committee (PAC) hearing called for tighter regulations to curb excessive hospital charges, unfair billing practices, and medical negligence.
Among the proposals were stricter oversight of hospital fees, capping premium hikes for long-term policyholders, and mandating billing transparency. – March 27, 2025