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Review staff insurance coverage to cut premium wastage, says NTUC

SINGAPORE — The labour movement has called for a review of the duplication of insurance coverage to reduce wastage of premiums paid when workers are covered by both self-paid and employer-paid schemes, among other proposals made to the MediShield Life Review Committee.

SINGAPORE — The labour movement has called for a review of the duplication of insurance coverage to reduce wastage of premiums paid when workers are covered by both self-paid and employer-paid schemes, among other proposals made to the MediShield Life Review Committee.

The National Trades Union Congress (NTUC) submitted its recommendations to the committee last week after conducting focus groups with more than 300 participants.

Its other proposals include having lower deductibles for those above the age of 80 and reducing co-insurance rates borne by patients for claimable amounts more than S$10,000.

The MediShield Life Review Committee said yesterday it would consider the suggestions “with regard to the need to balance the overall impact on premiums and affordability for all Singaporeans”.

On the call to review the duplication of insurance coverage, NTUC Assistant Secretary-General Cham Hui Fong noted that less than 5 per cent of companies now offer portable medical benefits, which can continue even with a change of employers.

To encourage more employers to offer portable medical benefits, NTUC suggested that the Government could at least double the tax incentive given to such companies for medical expenses — from up to 2 per cent of total employees’ remuneration to 4 per cent or more.

Some Singaporeans have bought integrated Shield plans from private insurers that offer benefits in addition to MediShield — the basic medical insurance scheme for large hospitalisation bills — but do not use them because they tap what is offered by employers first, said Ms Cham.

Employers could, instead, help pay for the integrated Shield premiums, enabling employees to save more, she said.

Older workers would also benefit. “A lot of companies tend to make adjustments to the medical benefits scheme when a person reaches the age of 62. (At that age), if you expect them to purchase a Shield plan, it’s very tricky, very difficult and very expensive,” added Ms Cham.

Healthcare policy expert Phua Kai Hong of the Lee Kuan Yew School of Public Policy agreed that the duplication of coverage is “probably unnecessary over-insurance”, but did not feel that removing such duplication would significantly affect overall healthcare cost increases.

Dr Phua said portable benefits schemes that entitle employers to tax incentives should be restricted to expenditure in the public healthcare sector or come with fixed limits, in order to contain costs and not induce unnecessary demand.

MediShield Life, together with ample Medisave funds, should provide portability to Singaporeans.

“You need to have more Medisave, as well as Medisave (set aside) to pay for future MediShield premiums, but you also have to regulate insurance and control costs on the supply side,” he added.

The labour movement also suggested reducing deductibles — the amount individuals have to pay before insurance kicks in — of those above the age of 80, so they pay the same level of deductibles as those aged 80 and below.

NTUC acknowledged its proposals could mean higher premiums, but said pre-funding could help with premium affordability in old age.

Ms Cham also expressed hope that the Government would offer Medisave top-ups for the low-income group during “good years”.

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