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At a glance
- The enhanced requirements to medical insurance for your helper better protect you in many ways, saving you both money and stress when unexpected medical emergencies happen.
- Stage 1 offers a higher minimum annual claim limit to protect you from large medical bills incurred by your MDW.
- Stage 2 provides direct payments to hospitals by insurers, so you’re not burdened with large upfront bills.
As an employer of a migrant domestic worker (MDW) in Singapore, you are responsible for her well-being, including her medical expenses. However, are you adequately prepared for medical emergencies? To help with this, the Ministry of Manpower (MOM) has rolled out enhanced medical insurance requirements for MDWs in two stages: July 2023 and July 2025.
Stage 1 enhancements
The first stage was implemented back on 1 July 2023. All new, renewed or extended MDW medical insurance (MI) policies must meet enhanced requirements, which was the increase in the coverage limit from $15,000 to $60,000 with 25% co-payment by employers for claim amounts above $15,000. The aim was to better protect you against large medical bills in case of unforeseen circumstances.
Medical bills could become larger
It’s essential to note that MDWs are charged more at Singapore’s public hospitals, like other foreigners. More than 5% of bills incurred exceed the pre-enhancement $15,000 coverage limit, which could place a significant financial strain on employers. Imagine having to shelve important plans, or delay a major purchase because of unexpectedly high medical costs for your MDW.
As medical costs rise, this proportion may increase. Insurance policies with enhanced coverage will help employers like you minimise out-of-pocket expenses. We estimate that over 99% of bills will fall within the new coverage.
Stage 2 enhancements from 1 July 2025
Every new, renewed, or extended MI policy for your MDW will need to meet three enhancements to offer you more protection:
- Standardisation of allowable exclusion clauses
Your insurer can only exclude a medical treatment if it’s listed on this MOM list. This enhancement provides better clarity on the scope of coverage provided by your MDW’s policy and helps reduce surprises.
- Age-differentiated premiums in two age bands
With this enhancement, Stage 2 enhanced policy premiums for MDWs aged 50 or below will generally be lower than those for older MDWs. As the majority of MDWs are 50 and under, you are likely to save on premiums.
- Direct payment by insurers to hospitals
Once a claim is assessed to be admissible, your insurer will pay the hospital directly for the claimable portion. This protects your cashflow by minimising the need for you to find a pay a large sum of cash upfront, making the process less stressful and more manageable.
With and without Stage 2 enhancements
Let’s have a look at two scenarios that illustrate the benefits that these bring.
Click/tap on image to enlarge in a new window.
Why you should switch now
Don't wait until the last minute. Medical emergencies can happen to your helper at any time and when you least expect it. Having coverage with Stage 2 enhancements for your helper earlier ensures that you’re better prepared for emergencies, both financially and emotionally as a large medical bill can be highly distressing.
Switching now also means you’ll avoid last-minute hassles, complications and potential policy lapses.
How to switch
Contact insurers that offer Stage 2 enhanced medical insurance to discuss your options. They can help you find the best policy based on your needs and budget.
By switching now, you will have greater peace of mind from knowing that your MDW enjoys better coverage. Why wait until it’s too late?