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Oral Answer by Mr Tan Chuan-Jin, Minister of State for National Development and Manpower, to Parliamentary Questions on Foreign and Local Workers' Health Coverage

Notice Paper No. 131 of 2012 for the Sitting on or after 15 May 2012
Question No. 360 for Oral Answer

MP: Assoc. Prof. Fatimah Lateef

Question

To ask the Deputy Prime Minister and Minister for Manpower what options are available to assist with the payment of large hospitalisation bills that exceed the cap payable by employers' insurance policies which are incurred by foreign workers and foreign domestic workers in the course of their employment here.

Notice Paper No. 155 of 2012 for the Sitting on or after 16 May 2012
Question No. 323 for Oral Answer

MP: ER Dr Lee Bee Wah

Question

To ask the Deputy Prime Minister and Minister for Manpower given that employers are to provide medical insurance for foreign workers to cover their inpatient care and day surgery (a) what is the rationale for not extending this regulation to employers of local workers; and (b) whether the Ministry will consider mandating employers to provide local low-wage workers coverage for their medical treatment and hospitalisation.

Answer

  1. Employers are required to provide for the healthcare needs of both their local and foreign workers. However, employers face different obligations due to the different context of subsidies available for each group.
  2. The Government does not give any healthcare subsidies to foreigners, including foreign workers. When employers bring in foreign workers for the short-term, we must ensure that foreign worker medical bills do not remain unpaid and instead get passed on to taxpayers. This would be unfair to society at large.
  3. Therefore, MOM requires all employers who wish to bring in foreign workers to bear the full costs of employing these workers, including bearing the cost of medical treatment for their S Pass and Work Permit holders, including foreign domestic workers. This condition is stated clearly when they apply for work passes.
  4. At times, employers may face financial difficulties meeting the foreign worker medical needs especially for day surgery or inpatient bills which tend to be larger. Mandatory employer-financed medical insurance for day surgery and inpatient expenses was introduced in 2008, for each Work Permit and S Pass holder employed. The minimum medical insurance coverage was set at a basic level in order to keep premiums affordable for the vast majority of employers. Employers are free to purchase insurance coverage of any higher amount for better peace of mind.
  5. We regularly review whether the minimum medical insurance coverage is adequate. In 2010, in response to feedback from employers, we raised the minimum insurance requirement from $5,000 to $15,000. Where the worker’s medical bill exceeds the insurance coverage, or is excluded by the insurance provider, the employer will have to pay the difference.
  6. Employers who still face difficulties in paying medical bills beyond the insured amount may approach the relevant healthcare provider to discuss various options, such as instalment payments. We encourage employers to avail themselves of higher insurance coverage, beyond the minimum requirement, if they wish to have greater protection and peace of mind.
  7. Local workers, on the other hand, are on a different and stronger footing with regard to government subsidies and employer contributions.
  8. First, the Government provides heavy subsidies for Singaporeans, of up to 75% for outpatient treatment at polyclinics, and up to 80% for inpatient care at restructured hospitals. Second, employers are required to contribute monthly to local employees’ CPF, including their Medisave Accounts. Third, the 3Ms framework, consisting of Medisave, Medishield and Medifund, exists for Singaporeans to provide for their long-term healthcare needs. The Government fully funds Medifund, and also provides top ups to the Medisave accounts of Singaporeans, particularly for older Singaporeans and those in the lower-income group. The Medisave component of the GST Voucher package also gives them a regular, annual top-up.
  9. The Government will keep refining its policies to ensure that healthcare costs are kept manageable for Singaporeans, and that nobody in need will be denied of medical treatment.