Competitive Analysis of Integrated Shield Plan Products

Dr Tan Wu Meng asked the Minister for Health (a) whether the market for Integrated Shield Plan (IP) insurance products has been studied from a competition perspective and, if so what are the findings; and (b) whether such competition study has considered the situation of existing IP insured who wish to change their IP provider.

MediShield Life is a basic health insurance scheme that provides Singaporeans with universal and lifelong protection against large healthcare bills. Integrated Shield Plans (IPs) provide optional additional coverage on top of MediShield Life. The IP market currently has seven IP insurers, all of whom have a similar range of IP offerings. MOH publishes the comparison of insurers’ benefits, premiums, terms and conditions and claims processing duration, to improve transparency and help consumers make informed decisions, including the choice of an IP plan.

IP policies and premiums are determined by private insurers based on their own commercial and actuarial considerations, as well as competitive factors especially for new policy holders. As is the case with most private healthcare insurance, new policyholders may be subject to underwriting, and their policy offers may also be subject to exclusions or premium loading if they are found to have pre-existing medical conditions. This applies also to existing IP policyholders who wish to change insurers. Nevertheless, MediShield Life covers all Singaporeans, including any pre-existing conditions regardless of their IP plan or exclusions.