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In a Facebook post on Tuesday (July 1), Minister for Health Ong Ye Kung expressed his concerns about the state of private insurance and private healthcare.
PHOTO: Google Maps
PUBLISHED ON July 01, 2025 5:10 PM By Candice Cai
Health Minister Ong Ye Kung has expressed concern over the state of private insurance and private healthcare and its unsustainability, stating how insurers and hospitals have gotten "tied up in a knot".
He added that the Ministry of Health (MOH) is helping with the "untying process", according to his Facebook post on Tuesday (July 1).
Ong's comments come after Great Eastern (GE) insurance group issued a notice last month that it is suspending the issuance of pre-authorisation certificates for admissions to Mount Elizabeth Hospital and Mount Elizabeth Novena Hospital from June 17, reported CNA.
Pre-authorisation certificates are taken as confirmation that the insurer has agreed to cover the patient's medical costs before treatment.
Sharing MOH's view on the matter, Ong noted that he had expressed his concerns about the state of private insurance and private healthcare "for some time".
"The current trend is not sustainable. Private health insurers and private hospitals have gotten themselves tied up in a knot, to the detriment of all stakeholders, including patients," he added.
But with that, there is a tendency "to use more than is necessary", he said, attributing the behaviour to "human nature".
He noted that insurers would then respond in two ways to the large claim amounts — by introducing safeguards into the claims process, which includes GE's latest measure, or by raising premiums.
The result? "No one is happy," Ong added.
"Policyholders are naturally unhappy that they are paying rising premiums but with more restrictions. Healthcare providers are finding it more cumbersome to make claims. Insurers are struggling to stay viable for their health portfolios," he explained.
The minister also noted that with an observed increase in private insurance holders making the switch to subsidised public health care, the system will come under increasing pressure.
"Policyholders, insurers, doctors, and hospitals are all caught in this knot. What can be done to untie it?"
They include introducing fee benchmarks to guard against over-charging by private health care providers, taking action against a "small minority" of doctors who make errant claims, as well as exploring the possibility of building a new, not-for-profit private hospital, which would still "take a few years", should the decision to go ahead be given.
"Ultimately, private insurers need to take a hard and realistic look at their product design, particularly those of riders," said Ong, giving credit to private insurers for "(making) some effort", by offering more affordable rider alternatives.
These riders may not fully cover deductibles or have a bigger co-payment component.
"Financial advisers need to present these more sensible options to policyholders," said Ong, noting that it will not only help private hospitals and private doctors focus on delivering value, but also ensure affordability for patients.
He stressed that every stakeholder needs to do its part, so that "step by step, this knot can be gradually loosened and untied".
"The recent moves by insurers may be disconcerting, but we need to see them against this broader context and the need to set the private healthcare financing system on a more sustainable footing. Otherwise, everyone loses," Ong said.
singapore
'Tied up in a knot': Ong Ye Kung concerned over state of private insurance and private healthcare
He said that with an observed increase in private insurance holders making the switch to subsidised public health care, the system will come under increasing pressure
In a Facebook post on Tuesday (July 1), Minister for Health Ong Ye Kung expressed his concerns about the state of private insurance and private healthcare.
PHOTO: Google Maps
PUBLISHED ON July 01, 2025 5:10 PM By Candice Cai
Health Minister Ong Ye Kung has expressed concern over the state of private insurance and private healthcare and its unsustainability, stating how insurers and hospitals have gotten "tied up in a knot".
He added that the Ministry of Health (MOH) is helping with the "untying process", according to his Facebook post on Tuesday (July 1).
Ong's comments come after Great Eastern (GE) insurance group issued a notice last month that it is suspending the issuance of pre-authorisation certificates for admissions to Mount Elizabeth Hospital and Mount Elizabeth Novena Hospital from June 17, reported CNA.
Pre-authorisation certificates are taken as confirmation that the insurer has agreed to cover the patient's medical costs before treatment.
Sharing MOH's view on the matter, Ong noted that he had expressed his concerns about the state of private insurance and private healthcare "for some time".
"The current trend is not sustainable. Private health insurers and private hospitals have gotten themselves tied up in a knot, to the detriment of all stakeholders, including patients," he added.
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'Knot' due to design of insurance products
He explained that the 'knot' had come about due to the design of insurance products that offer "generous coverage to win customers and market share".But with that, there is a tendency "to use more than is necessary", he said, attributing the behaviour to "human nature".
He noted that insurers would then respond in two ways to the large claim amounts — by introducing safeguards into the claims process, which includes GE's latest measure, or by raising premiums.
The result? "No one is happy," Ong added.
"Policyholders are naturally unhappy that they are paying rising premiums but with more restrictions. Healthcare providers are finding it more cumbersome to make claims. Insurers are struggling to stay viable for their health portfolios," he explained.
The minister also noted that with an observed increase in private insurance holders making the switch to subsidised public health care, the system will come under increasing pressure.
"Policyholders, insurers, doctors, and hospitals are all caught in this knot. What can be done to untie it?"
How MOH has intervened
In his post, the Health Minister highlighted several ways in which MOH has intervened to ease the situation.They include introducing fee benchmarks to guard against over-charging by private health care providers, taking action against a "small minority" of doctors who make errant claims, as well as exploring the possibility of building a new, not-for-profit private hospital, which would still "take a few years", should the decision to go ahead be given.
"Ultimately, private insurers need to take a hard and realistic look at their product design, particularly those of riders," said Ong, giving credit to private insurers for "(making) some effort", by offering more affordable rider alternatives.
These riders may not fully cover deductibles or have a bigger co-payment component.
"Financial advisers need to present these more sensible options to policyholders," said Ong, noting that it will not only help private hospitals and private doctors focus on delivering value, but also ensure affordability for patients.
He stressed that every stakeholder needs to do its part, so that "step by step, this knot can be gradually loosened and untied".
"The recent moves by insurers may be disconcerting, but we need to see them against this broader context and the need to set the private healthcare financing system on a more sustainable footing. Otherwise, everyone loses," Ong said.
