New requirements on Integrated Shield Plan riders from Apr. 2026 to curb rising healthcare costs: MOH

The Ministry of Health (MOH) will be introducing new requirements for Integrated Shield Plan (IP) riders from Apr. 1, 2026, in a move to curb escalating private healthcare costs and improve the long-term sustainability of health insurance.

What are Integrated Shield Plans (IP)?

Integrated Shield Plans (IP) are private medical insurance plans offered by private insurers that supplement one's MediShield Life coverage.

They are mainly targeted at helping policyholders cover higher-tier wards in public hospitals, or private hospital care.

Policyholders can also opt for IP riders, which are optional add-ons that help one to cover portions of the deductible and co-insurance required under the main IP prior to this announcement.

These riders may also reduce a policyholder's out-of-pocket (OOP) expenses, for example, by capping the amount needed to be paid when treatment is received from an insurer's preferred healthcare provider.

Why the changes are needed

IP riders have been identified as a driver of rising claims and premiums, particularly in the private healthcare sector.

Currently, 71 per cent of Singaporeans have IPs and 67 per cent of these IP policyholders have riders (about two million people).

Two out of three rider policyholders are on riders with maximum coverage.

The near-full coverage has contributed to an over-consumption and over-servicing associated with non-essential hospital admissions or treatments, which has in turn pushed premiums up sharply in recent years, especially for riders.

According to MOH, private hospital IP policyholders with riders are 1.4 times more likely to make a claim, and the average claim amount is also 1.4 times higher than those without riders.

As such, in order to curb rising private healthcare costs and premiums, the coverage provided by IP riders has to be moderated.

New requirements by MOH

Under the revised requirements, new IP riders will no longer be allowed to cover the minimum IP deductibles set by MOH, which are meant to encourage prudent use of healthcare services.

The annual co-payment cap will also be raised from a minimum of S$3,000 per year to S$6,000 per year, excluding the deductible.

The co-payment cap has not been adjusted since it was introduced in 2018 and it's been increased to keep up with bill inflation.

Policyholders must continue to pay at least five per cent of their bill, but both deductibles and co-payments can still be covered using MediSave, subject to prevailing withdrawal limits.

However, despite having to shoulder a larger share of the bills with the implementation of the new requirements, most claimants will not experience significant OOP costs:

1. About six in 10 claimants across all ward types are expected to face S$0 OOP payment after MediSave.
2.  Three in 10 are likely to pay under S$1,000 after MediSave.

The remaining group, which comprise mainly private hospital patients, may face higher amounts.

New riders will be more affordable

Singaporeans can expect the new riders to be much more affordable than the existing ones on the market today.

MOH estimates that the premiums of new IP riders will cost about 30 per cent less than existing riders with maximum coverage.

This translates to average annual premium savings of about S$600 for private hospital IP rider policyholders and S$200 for public hospital rider policyholders, with older policyholders enjoying greater premium savings.

However, MOH stressed that while the changes mean patients may pay more for smaller bills, they should not deter anyone from seeking necessary medical care.

Insurers to launch new IP riders by Apr. 1, 2026

According to MOH, insurers must introduce new IP riders by Apr. 1, 2026, and stop selling non-compliant versions from the same date.

Those who purchase rider policies on or after Nov. 27, 2025, will have to transition to riders that meet the new requirements no later than their next policy renewal after Apr. 1, 2028.

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