Cost Increase to Employers for Mandatory Corporate Medical Insurance

Mr Leon Perera asked the Minister for Health what is the estimated cost increase to employers and the impact on the Budget (as a result of associated tax benefits) involved in making portable corporate medical insurance mandatory.

With MediShield Life implemented in November 2015, all Singaporeans now have portable medical insurance. MediShield Life is a basic health insurance scheme that covers all Singaporeans and for all pre-existing illnesses, regardless of any change of employment status or employer. It provides sufficient coverage for subsidised treatment in public hospitals.

Today, many employers also extend medical benefits to their employees voluntarily as part of their employment contracts. MOM and the tripartite partners encourage employers to structure these benefits on a portable basis and the Government provides incentives for employers to do so, by offering higher tax deductions for medical expenses of up to 2% of total employees’ remuneration.

Portable medical benefits can take different forms, such as additional contributions to the employee’s Medisave account, which the employee can use for his healthcare expenses or insurance premiums for MediShield Life or Integrated Shield Plans even if he changes his job. Alternatively, employers may choose to pay for their employees' health insurance premiums directly.

MediShield Life is the mandatory, portable health insurance for all Singaporeans, covering them at all stages of life. Employers are already required to make mandatory contributions to their employees’ Medisave to help pay for the premiums of MediShield Life. MOH's focus will be to ensure that MediShield Life continues to meet the needs of Singaporeans.