Oral Answer by Mr Tan Chuan-Jin, Minister of State for National Development and Manpower, to Parliamentary Question on Re-employment of Elderly Workers
Notice Paper No. 109 of 2012 for the Sitting on 9 April 2012
Question No. 323 for Oral Answer
MP: Ms Foo Mee Har
Question:
To ask the Deputy Prime Minister and Minister for Manpower what can be done to help re-employed elderly workers who are re-assessed as 'new cases' by insurance companies upon their reaching the age of 62 and risk being denied coverage for existing medical conditions that were previously covered before re-employment.
Answer:
- The Retirement and Re-employment Act, which came into effect on 1 Jan
2012, requires employers to re-employ their older workers from age 62 to 65. To
enable these employees to continue to be covered by group medical insurance
schemes, we understand that most major insurers have extended the coverage of
employees up to the age of 65, or beyond. Re-employed employees who have been
working for the same company over the years and have been covered by the
company’s medical insurance schemes typically do not need to be re-assessed as
‘new cases’ for the purpose of insurance coverage in this regard. If an insurance
company does not extend the coverage of the scheme up to the age of 65 and also
requires re-employed employees to be re-assessed, the employer should work with the insurance company to address this issue so that the medical needs of these
employees can continue to be met.
- Industry feedback drawn from various briefing and outreach sessions has
shown that companies have already raised the coverage of their group medical
insurance schemes for their employees to the age of 65, or beyond. In such cases,
re-employed workers would continue to enjoy medical benefits under their
company’s medical insurance schemes. By so doing, they would avoid the risk of
being denied coverage for existing medical conditions that were previously
covered.