Proposed changes are targeted at integrated shield plans with full riders (i.e. allow hospitalization claims from the first dollar)
Moving on, there will not be any more full riders offered. All new rides will require to copay at least 5% of their hospitalization bill but likely capped at a max of $3,000 per year if the client seeks treatment at the insurer’s approved panel. Failing which, the cap does not apply.
All new policyholders starting 8th of March can still purchase full rider but is likely to switch to the new scheme latest by 1st April 2021.
MOH requires all insurers to come up with the new riders by 1st April 2019 – i.e. currently there are still no details on the new riders.
The intention of the new scheme is intended to help lower the premiums for shield plans and to address concerns of over-consumption, over-charging and over servicing by hospitals.
Based on the current proposal, there is no mention that existing policyholders have to switch to the new plan.
The above is a summary extracted from The Straits Times Article, ‘Parliament: Patients who buy new riders for integrated shield plans have to pay 5% of hospital bills’, dated 7th March 2018.
Most of the details are still hazy and although there is NO mention that existing policyholders will be affected, it is reviewed that:
(1) Existing Policyholders can choose to switch over to the new
scheme for premium savings, and
(2) Insurers can still decide to implement a scheme that differs from the proposed scheme as long as they meet the minimum stipulated requirements and also, insurers may also make changes to existing policyholders if the
interest and well being of all policyholders are kept in mind.
This is currently what is known, as to exactly how each insurer will react and how their plan will look like.