Higher Mandatory Medical Insurance Coverage For Maids And Foreign Workers From 1 July 2023
If you are the employer of a Work Permit or S Pass holder, you must buy and maintain medical insurance to cover inpatient care and day surgery, including hospital bills for conditions that may not be work-related. The required medical insurance coverage is currently at least $15,000 per year for each Work Permit holder.
This minimum required coverage will increase to $60,000 per year, for policies with start date effective on or after 1 July 2023.
Here’s what you need to know when the changes come into effect.
TL;DR: Enhanced Medical Insurance Coverage for Work Permit and S Pass holders from 1 July 2023
From 1 July 2023, there will be a higher minimum annual medical insurance coverage of $60,000; with 25 per cent co-payment by employers for claim amounts above $15,000.
If you are on an existing $15,000 medical insurance policy, you do not have to do anything.
From 1 July 2023 onwards, you must purchase a policy with coverage of at least $60,000 annual claim limit when you buy or renew your policy.
Jump to:
- Why Is The Foreign Worker Medical Insurance Coverage Increasing?
- How Will The Increase in Coverage Work?
- What Happens From 1 July 2023 And Is There Anything I Need to Do?
- Are There Any Future Changes?
Why Is The Foreign Worker Medical Insurance Coverage Increasing?
According to the Ministry of Manpower (MOM), more than five per cent of bills incurred exceed the $15k coverage limit and could put employers under financial strain.
With the rising medical costs, this percentage could increase even more. Thus, in order to better protect employers from large medical bills incurred by their foreign employees, the higher annual claim limit of $60,000 will cover larger and more bills.
This will minimise out-of-pocket expenses by employers and it is estimated that more than 99 per cent of bills will fall within the new coverage.
How Will The Enhanced Medical Insurance Coverage Work?
Currently, medical insurance only covers up to $15,000 of your maid’s medical expenses. Anything more than that will be paid 100% by you.
Under the new enhancements, the insurance provider will pay 75 per cent of any extra costs above $15,000, up to the new limit of $60,000.
This means that you will only need to pay 25 per cent of medical bills from $15,000 and above!
That’s great news for employers. However, it is expected that insurance premiums will be slightly adjusted upwards.
What Happens From 1 July 2023 And Is There Anything I Need to Do?
From 1 July 2023, there will be a higher minimum annual coverage of $60,000; with 25 per cent co-payment by employers for claim amounts above $15,000.
If you are on an existing $15,000 medical insurance policy, you do not have to do anything (until it expires, of course)!
However, you are encouraged to transition to the enhanced $60,000 medical insurance.
From 1 July 2023 onwards, you must purchase a policy with coverage of at least $60,000 annual claim limit when you buy or renew your policy.
Enhanced Foreign Workers Medical Insurance – Are There Any Future Changes?
Yes there are! The change from 1 July 2023 is stage 1 of the enhanced medical insurance.
Stage 2, which is from 1 July 2025 onwards, will see:
- Standardised exclusion clauses to provide clarity on the MI coverage
- Age-differentiated premiums to keep costs more affordable for most employers
- Direct bill reimbursement from insurers to hospitals to free up cashflow for employers
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