Minister for Health Ong Ye Kung spoke to the press on Dec 14 to clarify questions about the recent changes to Integrated Shield Plan (IP) riders.
Integrated Shield Plans are private medical insurance plans offered by private insurers that supplement one’s MediShield Life coverage. They are mainly targeted at helping policyholders cover higher-tier wards in public hospitals or private hospital care.
The Ministry of Health recently announced that it will be introducing new requirements for IP riders that will take effect from Apr 1, 2026. These are aimed at curbing escalating private healthcare costs and ensuring the long-term sustainability of health insurance.
Ong’s response
1. Changes only affect new policyholders using private healthcare
Some members of the public expressed concerns that the new rules might affect those who rely on public hospital subsidies. Ong clarified that this policy affects only new policyholders who need IP riders for private healthcare and does not affect subsidised public hospital care.
2. Targeting private insurance
Another common question is why the changes focus on insurers and patients with IP riders. According to Ong, private insurance is one part of a larger system contributing to rising healthcare costs.
To manage the issue, the government has strengthened MediShield Life through a major review, increased public healthcare subsidies in various segments, introduced benchmarks for hospital fees and professional fees to encourage discipline among private providers, and taken enforcement action against a small number of doctors submitting inappropriate claims.
“Insurance [also] plays a part, and therefore we are making these changes to new IP rider policies,” he explained.
3. Moderating private healthcare costs
Many worry that higher deductibles and co-payments will push patients from private to public hospitals, increasing queues and wait times. Ong acknowledged the concern but explained that rising premiums and bills in private healthcare are already forcing around 100,000 people to cancel or downgrade their IP riders each year.
“[This] is why we are introducing this policy to moderate private healthcare cost escalation and premium escalation. This hopefully persuades people to downgrade their rider to something more affordable with a 30 per cent reduction in premiums, and maybe they can hold on to it and stay with private healthcare,” said Ong.
He added that while some procedures, such as colonoscopies, might temporarily shift to public hospitals, the impact is expected to be small since the policy only affects new policyholders. The Ministry will monitor the situation closely and take further measures if needed.
Ong also offered guidance to those unsure whether to keep or downgrade their riders: Talk to your financial advisor, ask for a breakdown of what each policy covers and its premiums, and consider whether the most expensive IP riders are worth it given the coverage.
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