Rest easy: No premium hike for Integrated Shield Plan top-ups

The commitment lasts for one year..

The Life Insurance Association of Singapore today announced that it is not raising the top-up portion of IP premiums for plans covering Class B1 and A wards of public hospitals for one year following the implementation of MediShield Life.

According to the LIA, this commitment covers Class B1 and A wards of public hospitals and is based on the assumption that there is no significant change to their regulatory and competitive environments.

“This will allow for a smooth transition as all renewals of these IPs during the one-year period will see no increase in the premiums for the top-up portion. Thereafter, IP insurers will re-evaluate and re-assess plans based on actual experience e.g. claims, to ensure that top-up benefits remain relevant in meeting the evolving needs of Singapore residents,” stated the LIA.

Here’s more:

Current Class B1 plans are subject to review including the top-up premiums, in consultation with the Ministry of Health (MOH) and other relevant authorities as part of deliberations to develop key features for a standardised IP focused on Class B1 coverage. Ongoing review is critical to ensure IPs remain relevant and financially viable.

For plans covering private hospitals, IP insurers will take into account the effect of MediShield Life benefit enhancements, in addition to other important factors including past claims experience, projected future medical inflation rate and claims usage.

IP insurers will actively engage with policy-makers such as MOH, the healthcare industry and relevant organisations to combat medical inflation and better manage costs.