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Insurers support expansion of official healthcare schemes

SINGAPORE — Private health insurers here are supportive of the Government’s push to enhance the MediShield scheme for universal coverage, despite the potential changes that the new policies might introduce into the industry.

SINGAPORE — Private health insurers here are supportive of the Government’s push to enhance the MediShield scheme for universal coverage, despite the potential changes that the new policies might introduce into the industry.

“We are happy that the Government is providing a more comprehensive healthcare coverage for Singaporeans,” said Great Eastern’s Chief Executive for Singapore, Dr Khoo Kah Siang. “This is also an opportunity to raise the awareness for insurance as a tool to address Singaporeans’ needs.”

Great Eastern is one of five private insurers providing plans integrated with MediShield, which are set to be affected once the Government launches MediShield Life, an expanded healthcare financing framework announced by Prime Minister Lee Hsien Loong in his National Day Rally speech.

“We have to wait for the Government to announce the details on MediShield Life before we can adjust our shield plan accordingly,” said Dr Khoo. “If the Government expands MediShield’s coverage, inevitably we’ll have to increase our premiums as we tweak our coverage accordingly.”

The insurance industry is preparing to engage the Government in discussions about MediShield Life once the public consultation about the scheme gets under way.

“We believe the Ministry of Health will consult with insurers of Shield plans as they work out the details, and we look forward to those discussions,” said Mr Pui Phusangmook, Senior Vice-President and General Manager of NTUC Income’s Group and Health Division.

“For universal coverage to work, the Government, insurers and policyholders will have to find an equitable and sustainable way to share the costs,” he added.

But the potential changes should only be a minor shift for the industry, Dr Khoo said. The priority going forward remains ensuring that more Singaporeans are adequately covered to cope with rising medical costs and medical inflation.

“In the health insurance segment, around two million Singaporeans are insured with integrated Shield plans — so the potential here is great in terms of getting people to become more comprehensively insured. There’s where we need to do more, and that’s why our role in supporting national healthcare will not change,” he said.

AIA Singapore’s Chief Marketing Officer, Ms Ho Lee Yan, agreed, citing further figures. “Our 2011 AIA Singapore Nationwide Protection Survey revealed that slightly more than one in 10 Singaporeans are adequately insured, and one in five who do not own any life insurance do not see the need for it,” she said.

“As Singapore grapples with rising medical costs, an ageing population and higher life expectancy, Singaporeans need to ensure that they are financially secure at every stage of their lives,” she added.

But whatever happens in the health segment, the key to overall growth is to make sure insurers offer what consumers need, especially in areas which offer room for expansion such as income protection, said Dr Khoo.

“But how do we position ourselves to tap the market potential? It’s about creating attractive and innovative product propositions, training our people to reach out to more customers, and developing the right tools for more effective engagement in a digital age. These are the components that help us remain relevant to our customers,” he said.

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