Written Answer by Mr Tan Chuan-Jin, Minister for Manpower, to Parliamentary Question on Limit on Medical Costs to be Borne by Employers of Foreign Domestic Workers

Notice Paper No. 344 Of 2014 For The Sitting On Or After 3 November 2014 Question No. 334 For Written Answer

MP: Mr Zaqy Mohamad

To ask the Minister for Manpower (a) whether there is a cap on medical costs to be borne by an employer of a foreign domestic worker (FDW); (b) whether the liabilities to be covered by an employer of a FDW are different from a company's liability for an employee's healthcare cost which has an upper limit based on workmen's compensation and other corporate insurance taken on its employees; (c) with an FDW's medical and hospitalisation charges being billed as that for foreign patients, how can the Government protect employers who face high medical and hospital bills.

Answer

1. The Government does not give any healthcare subsidies to foreigners, including foreign domestic workers (FDWs). When employers bring in FDWs, we must ensure that any medical bills incurred by the FDW do not remain unpaid and get passed on to taxpayers. This would be unfair to society at large.
2. Therefore, MOM requires all employers of FDWs and non-domestic Work Permit Holders to bear the full costs of employing these workers, including the cost of medical treatment. Employers agree with this condition when they apply for work passes.
3. To help employers meet the financial burden of bearing the medical costs of their foreign workers, including FDWs, mandatory employer-financed medical insurance for day surgery and inpatient expenses was introduced in 2008, for each Work Permit and S Pass holder employed. This is complemented by additional requirements to purchase, in the case of FDWs, Personal Accident Insurance (PAI) with a mandatory minimum coverage of $40,000.
4. The minimum medical insurance coverage was set at a basic level in order to keep premiums affordable for the vast majority of employers. In 2010, in response to feedback from employers, we raised the mandatory minimum coverage from $5,000 to $15,000 per worker per year. This is sufficient to fully cover 98% of day surgery and inpatient bills incurred by FDWs at the public hospitals from 2010 to 2013, and continues to provide a reasonable level of protection for employers, at affordable premiums.
5. Employers who still face difficulties in paying medical bills beyond the insured amount may approach the hospitals to discuss various options, such as instalment payments. For greater protection and peace of mind, we encourage employers who are concerned about paying for high medical bills, including those who wish to obtain treatment at private hospitals, to purchase higher insurance coverage beyond the minimum requirement.