MANDATORY MEDICAL INSURANCE FOR FOREIGN WORKERS

MANDATORY MEDICAL INSURANCE FOR FOREIGN WORKERS

19.

Er Lee Bee Wah asked the Minister for Manpower in view of the need for employers to provide mandatory medical insurance for their foreign workers (a) what will be the impact of this insurance policy on the utilisation of our hospitals and outpatient facilities to meet the demands of these workers; and (b) what safeguards are in place to prevent possible abuses of this insurance policy.

Dr Ng Eng Hen: The mandatory requirement of medical insurance is set at the level of coverage of $5,000 for inpatient treatment and day surgery only. It excludes outpatient treatment. These terms of insurance coverage make abuse less likely.

Additionally, insurers generally build in safeguards against abuse in their policies. These include provisions within the insurance plan to prevent and recover fraudulent claims, and the exclusion of pre-existing medical conditions. To encourage responsible healthcare usage, employers have the flexibility to enter into co-payment arrangements with their foreign workers and co-pay the cost of the co-insurance or deductibles. MOM will allow this but will also set an absolute cap that is proportionate to wages earned, to ensure that the co-payment is not onerous on the foreign workers. We do not anticipate any increase in utilisation of medical services as a result of compulsory medical insurance but will monitor usage patterns nonetheless.

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