Having health insurance in Singapore isn’t just a smart move, it’s essential.
Medical bills here can get expensive fast, and while the government provides basic coverage, many Singaporeans choose to enhance it with private plans for better protection and peace of mind.
In this guide, we’ll break down everything you need to know about MediShield Life, Integrated Shield Plans, and private health insurance, so you can make informed decisions for yourself and your family.
What is MediShield Life?
The Singapore government introduced MediShield in 1990 to help citizens manage large hospital bills that Medisave alone might not cover. In 2015, it evolved into MediShield Life, a mandatory national health insurance scheme for all Singapore Citizens and Permanent Residents (PRs).
MediShield Life:
- Covers large hospitalisation bills and certain costly outpatient treatments.
- Includes pre-existing conditions, good news for those with chronic illnesses like diabetes or heart disease.
- Is fully payable by Medisave.
However, MediShield Life only provides basic coverage. It doesn’t cover private hospital bills fully, and you’ll still need to pay deductibles and co-insurance out of pocket.
Health insurance for non-citizens and foreign workers
For employees who are not SC or PRs, employers typically provide some form of medical coverage, but it’s often limited.
According to the Ministry of Manpower (MOM), employers must buy medical insurance for each work permit holder, with at least S$15,000 coverage per policy before 1 July 2023, or S$60,000 per year for policies starting after 1 July 2023.
However, this rule doesn’t apply to Employment Pass (EP) holders. Most EP holders therefore need to purchase their own private health insurance in Singapore.
Some companies include additional medical benefits as part of their employment package to attract talent, but these are not legally required. Specifically, employers are not obliged to offer full medical coverage to non-manual employees earning more than S$2,600 a month.
In short, while work permit holders enjoy a certain level of protection under MOM regulations, many other foreign professionals will need to get their own private or international health insurance for adequate coverage.
How expensive can hospital bills get in Singapore?
Healthcare is top-quality, but it comes at a price.
For illustration purposes, this is an example of an interim bill from November 2021.
A patient hospitalised in a private single-bed ward for laparotomy surgery to remove ovarian cysts saw her bill rise from S$32,000 to S$57,653 due to surgical complications.
Her Letter of Guarantee only covered the initial estimate, and while Medisave paid S$7,200, she still had to pay about S$18,400 out of pocket.
This shows how quickly hospitalisation costs in Singapore can escalate. Even with MediShield Life, unexpected complications or private hospital stays can leave you with hefty bills.
That’s why having adequate health insurance coverage, such as an Integrated Shield Plan or private health insurance, is crucial for financial protection.
MediShield Life vs Integrated Shield Plans
While MediShield Life offers affordable, basic coverage, it’s not designed to cover every cost, especially if you prefer private hospitals or shorter waiting times.
That’s where IIPs come in. Offered by private insurers, these plans combine MediShield Life with additional benefits, such as:
- Higher annual claim limits
- Pre- and post-hospitalisation coverage
- Private or single-bed hospital room options
More than 3 million Singaporeans already have IPs for added protection.
Popular IP providers in Singapore
- AIA: HealthShield Gold Max
- Singlife: Singlife Shield
- HSBC Life: HSBC Life Shield (Previously AXA Shield)
- Great Eastern: SupremeHealth
- Income: Enhanced IncomeShield
- Prudential: PruShield
- Raffles Health Insurance: Raffles Shield
Read more: Best Integrated Shield Plans and riders in Singapore
Choosing the right health insurance coverage
When comparing health insurance in Singapore, here’s what to consider:
Affordability of premiums
Premiums for MediShield Life and IPs increase with age.
Check how much of your premium you can pay using Medisave, and whether you’re comfortable covering any remaining amount out of pocket. Also consider that premiums and riders are not guaranteed, insurers may revise them over time.
Choice of hospital and ward class
Think about where and how you prefer to receive treatment. Many buy IPs that cover private hospitalisation so they can see preferred doctors or avoid long waiting times at public hospitals.
Others stick to restructured hospitals for affordability. Your choice of ward class (A, B1, B2, or C) will directly affect your costs and coverage.
Annual coverage limits
All IPs have unlimited lifetime coverage but differ in their annual limits. Depending on your insurer, this can range from about S$1.5 million to S$2.5 million per year. Higher limits provide more protection against large or repeated medical bills.
Deductible and co-insurance
Every claim is subject to a deductible (the amount you must pay first) and co-insurance (a small percentage of the remaining bill).
Some insurers offer riders that reduce or waive these amounts. You can also add a hospital cash rider, which pays you a fixed sum for each day you’re warded, useful for offsetting out-of-pocket expenses.
By understanding these factors, you can choose a health insurance plan that fits your budget, hospital preference, and desired level of coverage.
Read more: How To Choose a Private Integrated Shield Plan
Health insurance options for foreigners
Foreigners can also get IPs, though premiums are higher. Alternatively, global health insurance provides coverage in Singapore and your home country.
Example:
John, a 35-year-old expat in Singapore, pays:
- S$1,386 / year for an AIA HealthShield Gold Max plan
- S$2,488 / year for HSBC GlobalCare (worldwide coverage, excluding the US)
If returning home for treatment is important, global medical insurance may be worth the extra cost.
FAQs about health insurance
What’s the difference between MediShield Life and Integrated Shield Plans?
MediShield Life is the government’s basic health insurance for SCs and PRs. It covers large hospital bills in public hospitals. IPs add private coverage, such as access to private hospitals, higher annual limits, and pre- and post-hospitalisation benefits.
How much does health insurance cost in Singapore?
MediShield Life premiums are affordable and fully payable through Medisave. Private IPs cost more, usually ranging from a few hundred to several thousand dollars per year, depending on your age and coverage level.
Can foreigners buy health insurance in Singapore?
Yes. Foreigners can buy private or international health insurance plans, although premiums are generally higher. IPs are mainly designed for citizens and PRs, but some insurers offer similar products to non-residents.
Does MediShield Life cover pre-existing conditions?
Yes, it does. MediShield Life provides lifetime coverage for all SCs and PRs, including those with pre-existing medical conditions such as diabetes or heart disease.
What’s covered under outpatient benefits?
Most IPs include coverage for outpatient treatments like chemotherapy, kidney dialysis, immunosuppressants for transplants, and day surgeries. Since April 2023, IPs only cover MOH-approved cancer treatments, so always check your insurer’s list of approved procedures before treatment.
What’s the best health insurance plan in Singapore?
There’s no single “best” plan, it depends on your health needs, preferred hospitals, and budget. Compare plans carefully to find one that offers the right mix of affordability and protection.
In conclusion
Choosing the right health insurance takes a bit of research, but it’s well worth the effort. Whether you stick with MediShield Life or upgrade to an IP, make sure you understand the coverage, costs, and benefits.
At the end of the day, good health insurance ensures you get the care you need, without worrying about the bill.
Want to know more about how you can supplement your insurance coverage? Drop us an email at ask@plannerbee.co today!
Read more: What’s Changing for MediSave, MediShield Life, Dental and Long-Term Care in 2025
