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Mandatory malpractice insurance could be coming for Singapore
A proposal is being considered by the Singapore Medical Council (SMC) and the Ministry of Health that may make securing malpractice insurance mandatory for doctors. Treatment can be risky for both patients and medical staff, all of whom work hard to avoid mistakes. The reality is that sometimes errors are made by doctors and medical staff, and such errors can be quite costly, and not just in terms of dollars and cents. This week, Pacific Prime Singapore looks at what’s being considered by the health authorities, and how doctors’ insurance can affect your health costs.
Coverage to protect doctors from lawsuits
Things that go wrong in the medical profession can often lead to some really major corrections. Doctors take their responsibility for people’s lives very seriously, but they aren’t immune to making mistakes from time to time. What malpractice insurance protects doctors from is the financial obligations that arise from having a lawsuit brought against them by patients. Such insurance covers both the costs of going to court over malpractice, but also any reimbursement ordered by the courts should they find in favor of the patient.
Consider the case of a patient who sued his private-sector surgeon after something went wrong during bariatric surgery. The weeks of corrective operations and treatments came to a final bill of SGD 500,000, something the patient sought from the operating surgeon through a lawsuit. The case was settled for a sum of SGD 200,000 (paid in one SGD 100,000 lump sum and a 3,000 per month arrangement after) and a public apology. Why wasn’t the patient successful in seeking the full amount? The surgeon lacked the money to pay and didn’t hold insurance.
The problem for the doctor and the patient, in this case, is that malpractice insurance is not required to practice. Not by Singaporean law, nor by any SMC conditions. However, the Council admits that current legislation arrangements do allow for them to make insurance mandatory of their members should they wish to institute such a regulation. While most Singaporean doctors do indeed hold insurance for their own peace of mind, cases such as the one mentioned are leading the SMC and Ministry to consider their options.
The impact of malpractice insurance on the cost of healthcare
No matter which way you look at it, malpractice in the medical profession impacts the cost of healthcare. In 2012, medical malpractice payouts in the US reached a whopping USD 3 billion, something Texas A&M University’s Corpus Christi campus says affects patients across the country. Physicians and medical experts have argued that malpractice claims lead to escalating health costs, as hospitals, staff, and insurance companies are increasingly sued for liabilities reaching into the millions of dollars and higher.
These costs, as well as increasing malpractice insurance premiums for doctors, all trickle down in some way to the bills that patients can rack up after receiving treatment. A hospital saddled with a large malpractice settlement for patient may look to recoup the costs by increasing healthcare and treatment prices for others. As discussed in our annual International Private Medical Insurance Inflation – 2017 report, higher costs for doctors and hospitals often mean higher costs for insurers and the insured.
The flipside, however, is that doctors who don’t have adequate insurance also put financial pressure on the health system. This can be from lumping extra, unnecessary treatment costs onto patients to potentially leaving hospitals themselves to foot the bill when neither a patient nor doctor can pay for corrective operations. In the same Texas A&M article, the university also mentions how doctors may engage in “defensive medicine”, which is overusing costly tests and diagnostics in order to avoid potentially litigious outcomes in medical care.
Mandatory insurance for doctors: what it means for Singaporean healthcare
At this stage, the SCM and Ministry of Health are only considering what a Singapore with mandatory malpractice insurance for doctors might mean. The country is highly regarded for having an efficient and innovative healthcare system, so a move to roll out a mandatory insurance policy is likely to be well planned and thought-out. That said, it’s also likely that requiring such insurance coverage from doctors will indeed impact the cost of healthcare in Singapore, as well as the cost of insurance.
With the way malpractice incidents put financial strain on the doctors and hospitals who are required to meet them, the more appropriate questions might be: just how will doctor errors cost Singaporean citizens and residents in the future? Will costs be through passed via doctors’ insurance costs, or via trickled down hospital price increases? Whatever the method, any pressure on healthcare prices will inevitably end up hitting the wallets of the end users of health services. In order to financially secure your ability to afford care, it’s worth considering health insurance.
Health insurance in Singapore
In our newest Cost of International Health Insurance – 2017 report, Singapore has already surpassed China to become the second most expensive country for insurance in Asia (more on this report next week). If mandatory malpractice insurance kicks in for Singaporean doctors, it means that the already expensive region will likely see some upward pressure with regards to medical and insurance prices. The way to find the best deals on health insurance is to use an expert broker like Pacific Prime Singapore.
Our team of expert consultants have been providing clients with the sort of health coverage they need, for a price that works within their budget. When it comes to doctor malpractice, having health insurance provides more than just financial protection. As well as covering any costs of corrective procedures following doctor error, insurance companies themselves will usually take action against a doctor or hospital to recover the costs attributed to your care; meaning you’re free to recover while they undertake all the legal proceedings.
For a free quote or some friendly advice, contact the team at Pacific Prime Singapore today.
Serena earned her Bachelor’s Degree in Psychology from the University of British Columbia, Canada. As such, she is an avid advocate of mental health and is fascinated by all things psychology (especially if it’s cognitive psychology!).
Her previous work experience includes teaching toddlers to read, writing for a travel/wellness online magazine, and then a business news blog. These combined experiences give her the skills and insights she needs to explain complex ideas in a succinct way. Being the daughter of an immigrant and a traveler herself, she is passionate about educating expats and digital nomads on travel and international health insurance.
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