Public doctors get new insurer, putting pressure on indemnity insurance

With indemnity insurance for doctors in the public sector about to expire, the Ministry of Health Holdings (MOHH) has announced coverage will be taken over by a new insurer. Following our article on the possible introduction of mandatory malpractice insurance for Singapore, this recent news impacting 9,000 public health doctors could also see further pressure put upon the cost of healthcare in the country.

A new indemnity insurance insurer for public doctors

The Straits Times has reported this month that an MOHH process, beginning in January this year, has selected a new insurer to provide indemnity insurance. The previous provider, London-based Medical Protection Society (MPS), will see it’s 11,000 clients reduce to only the 4,500 doctors working in the Singapore private sector. Some believe the change was due to concerns about “tail cover” for doctors.

Tail cover protects against future suits for incidents that occurred whilst a doctor was insured, and this includes where the doctor in question has already retired or left the public sector. In 2015, MPS caused a stir in the medical community when it reduced its premiums by a considerable amount, but then ceased providing tail cover once a doctor stopped paying the annual premium. Since then, premiums have almost returned to the same level as before.

Insurance broker Aon has provided the new scheme, which public doctors will move to throughout the year as their current coverage expires. The MOHH has said it doesn’t believe that doctors need separate tail coverage insurance of their own, and that Aon is providing coverage and premiums comparable to that of MPS. The costs of the insurance will be paid by the public institutions where the doctors work.

Change to affect health insurance and medical costs

As the number of clients an insurer has can affect the premiums it charges, there are concerns that this move can mean higher indemnity insurance costs for MPS’ remaining clients. Insurance premiums are generally lower where an insurer has more people with which to spread their risk across. The significant reduction of 9,000 clients in the space of a year could leave the 4,500 remaining doctors in Singapore with more of a burden to bear.

The domino-effect to this could be that private doctors, now faced with higher indemnity coverage costs, may pass this increase onto patients through higher medical fees and hospital charges. While the Singapore government has taken care of the public sector, private sector doctors might feel the pinch. This change has the potential to impact private health insurance holders.

MPS is said to be disappointed by the move, however stated that their membership subscriptions were not based on the number of insured, but the anticipated claims experience. As a not-for-profit doctors’ cooperative, MPS provides coverage for doctors in other locations, including the UK, Ireland, South Africa, New Zealand, Malaysia, the Caribbean and Bermuda, as well as 10,000 members in Hong Kong.

How do I avoid insurance increases?

If the indemnity insurance changes affect healthcare costs, then it’s likely private health insurers may also seek to increase premiums. The cost of healthcare is always rising, that’s simply a fact of life. However, potentially industry-changing moves such as this news from the MOHH may in fact make the rise higher than normally anticipated. The best way to secure a low premium price is to secure health insurance sooner rather than later.

Pacific Prime Singapore has an experienced team of advisers who can find you the right coverage for a price that’s within your budget. Whether you’re an individual or corporate client, our consultants can lock in a premium to guarantee you coverage unaffected by price increases that might come from the indemnity insurance changes in Singapore. Check out our online comparison tool for a free quote, or call our team today!

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Martin Lee

Content Creator at Pacific Prime Singapore

Martin is a writer and translator with over 10 years of experience. He writes articles and blog posts, creates infographics and videos, translates between Chinese and English, and more. Skilled at explaining complicated concepts in layman’s terms, Martin believes the gold standard of translation is attained when the translated text is not only accurate, but also reads like an original text. Martin holds a degree in Economics from the University of London, UK.

Since joining Pacific Prime, Martin has become even more aware of the gap between the true value of insurance products and most people’s appreciation of it, and developed a passion for demystifying and simplifying matters, so that more people get the protection they need at a cost they can easily afford.

In his free time, Martin attends concerts of various genres, and plays the violin with piano accompaniment he pre-recorded himself or played live by his niece.

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