S Pass medical insurance requirements
You must buy and maintain medical insurance (MI) for each S Pass holder you employ before you can issue or renew an S Pass. The insurance cost cannot be passed on to your workers.
What it should cover
As part of an employer's S Pass medical obligations, you must buy and maintain MI with coverage for inpatient care and day surgery, including hospital bills for conditions that may not be work-related. The coverage for each S Pass holder has to be at least $60,000 per year.
Enhanced MI
Since 1 July 2023, we have enhanced the minimum MI required for all new and existing S Pass holders. The enhanced MI will better protect employers against large medical bills incurred by your workers, and will be implemented in two stages as shown in the table below.
| To implement for MI policies, renewals or extensions with start date effective from | Enhanced MI requirements |
|---|---|
| 1 July 2023 (Stage 1) | Higher annual claim limit of at least $60,000, with a co-payment of 75% by insurers and 25% by employers for claim amounts above $15,000. |
| 1 July 2025 (Stage 2) |
|
You can have a co-pay arrangement with the S Pass holder for their medical bills, only if all of the following are met:
- The co-pay amount is reasonable and does not exceed 10% of the worker’s fixed monthly salary.
- The duration of co-payment does not exceed 6 months (for every 2 years of employment).
- The co-payment option is explicitly in the employment contract or collective agreement and has the worker’s full consent.