Do Singapore’s insurers and private hospitals need a rethink as costs surge?

Great Eastern’s move has spurred industry experts to call for calibrated adjustments to the healthcare insurance system involving the key stakeholders instead of an overhaul, and greater data transparency to help policyholders make informed decisions as expenses continue to rise across the industry.

Last month, Great Eastern announced it would stop issuing pre-authorisation certificates for policyholders admitted to Mount Elizabeth hospitals in Novena and Orchard owing to what it said were high costs at the two facilities.

Pre-authorisation refers to the insurer’s approval of coverage for medical costs before treatment. The certificates minimise the upfront cash deposit needed for certain costs such as hospitalisation and surgical expenses, doctors’ fees, tests conducted in hospital and some outpatient treatments by having the insurer settle these pre-approved expenses directly with the hospital.

Without the certificates, patients may have to foot the bill for their treatments first before filing a claim with the insurer for assessment.

Great Eastern told local media it observed that over the past few years “certain private hospitals have been charging significantly more for similar treatment” and that the move was part of “ongoing efforts to manage rising healthcare costs and ensure long-term affordability for all policyholders”.