Oral Answer by Dr Amy Khor, Senior Minister of State for Health and Manpower, to Parliamentary Question on Requiring Employers to Offer Health Insurance Coverage, Other Than Medishield Life, for Senior Workers above the Re-employment Age Ceiling

1. Our employment laws, in general, stipulate basic labour standards; and we allow employers room to provide additional benefits relevant to their circumstances. In this case, the Employment Act stipulates that employers have to pay for their employees’ medical consultation fees while they are in employment.
2. We are however happy to note that many employers have gone beyond these basic requirements to also provide health insurance for their employees, so as to attract and retain valued workers. A survey conducted by MOM found that about six in ten companies with at least 25 employees provide inpatient medical benefits for their local employees in 2013. Of these companies, 86% provide such medical benefits through group medical insurance. As for re-employed workers¹, a separate survey found that around nine in ten companies continued to maintain their inpatient medical benefits when re-employing them at the age of 62.
3. At the same time, the tripartite partners have been encouraging employers to enhance the portability of their medical benefits. On its part, the Government provides incentives for employers who do so by way of higher tax deductions for medical expenses of up to 2% of total employees’ remuneration. Employers can also enjoy the additional tax deduction when they make ad hoc Medisave contributions for their employees.
4. A tripartite workgroup is looking at ways to enhance portable medical benefits to complement MediShield Life, which when implemented in end-2015 will provide lifelong healthcare insurance protection for all Singaporeans. This includes older citizens, regardless of whether they continue to be employed.