MOH scraps full-deductible IP riders from 2026

This is amidst low employer healthcare spending and a growing insurance market.

The Ministry of Health (MOH) will introduce a new design framework for Integrated Shield Plan (IP) riders from 1 April 2026, removing riders that cover the full deductible and tightening cost-sharing rules to support the sustainability of private health insurance and moderate rising healthcare costs.

Under the changes, new riders will no longer be allowed to cover the minimum IP deductible, which will continue to range from $1,500 to $3,500 depending on ward class. Riders must retain the existing 5% co-payment requirement.

MOH will also raise the annual co-payment cap for new riders to at least $6,000, doubling the previous minimum cap of $3,000 introduced in 2018. The cap applies only to co-payments and not to deductibles, and typically only to panel or pre-authorised claims.

Deductibles and co-payments may continue to be paid with MediSave, subject to prevailing limits.

Rider premiums falling

MOH said the redesigned riders are expected to be about 30% cheaper on average than current high-coverage versions. Based on indicative figures provided, annual premiums may fall by around $660 for private hospital riders and around $200 for public hospital riders, with older policyholders seeing larger reductions.

The ministry noted that policyholders with riders are 1.4 times more likely to make claims, and have 1.4 times higher average claim sizes than those without riders.

Insurers must launch compliant riders by 1 April 2026 and cease sales of non-compliant riders on the same date.

Riders sold from 27 November 2025 will transition to the new design at the next policy renewal after 1 April 2028.

Approaches for riders purchased before 27 November will vary by insurer. MOH advised policyholders to review options with their financial advisers.

Benefits gap backdrop

The changes come as employer healthcare support remains limited. According to Aon’s Global Benefits Trends Study 2025, employers in Singapore allocate just 10% of total benefits expenditure to healthcare.

They also coincide with a growing insurance market. Singapore’s general insurance market is projected to reach US$6.5b by 2030, according to GlobalData. This is supported by rising demand for health-insurance products.

A Forrester study also highlights a widening perception gap in Singapore’s health-insurance sector, with policyholders reporting weaker brand alignment and calling for simpler and clearer coverage explanations.

Sustainability and safeguards

MOH said the changes build on measures introduced since 2018 to address cost escalation in private healthcare. In its separate briefings on insurance sustainability, the ministry noted that minimal co-payment riders had contributed to higher utilisation and claim sizes, and emphasised that co-payment requirements play a role in encouraging prudent consumption.

MOH has also introduced consumer-safeguard measures in recent years, including requirements around pre-authorisation and fee benchmarks.