Analyses & Studies

Study Reveals 79% of Employee Benefit Plans in Singapore Provide Insufficient Medical Coverage for Expats

A recent study conducted by Interexpat, a leading health insurance advisory firm, reveals that 79% of employee medical plans offered to expatriates in Singapore fail to provide adequate coverage for significant medical expenses. The findings raise serious concerns about the financial risks faced by expats, especially when dealing with large medical bills in one of Asia's most expensive cities, yet one that is also ranked most liveable by expats.

The study highlighted critical gaps in coverage, particularly in hospitalisation, cancer treatment, and intensive care. For instance, the average annual limit for hospitalisation coverage is S$128,615, but the median figure is a much lower S$30,000, meaning half of the plans fall below this threshold. Similarly, cancer treatment coverage has an average limit of S$38,167, while the median sits at just S$20,000.

The data also reveal that:

  • Only 7% of plans offer unlimited hospitalisation coverage.
  • 9% of plans impose co-payment requirements on hospitalisation.
  • The average limit for Intensive Care Unit (ICU) treatment is S$54,750, with a median of S$39,000.
  • Major medical coverage, which supplements hospitalisation, averages S$78,750 but has a median of just S$80,000.
  • 35% of plans fail to offer full coverage for dependents.

These coverage shortfalls leave expatriates vulnerable to substantial out-of-pocket expenses. As expats are already burdened with high costs of housing, schooling, and daily living in Singapore, the lack of adequate medical coverage further compounds their financial strain.

In response to these findings, Interexpat is launching a new Core-Flex benefits solution, designed to address the inadequacies of existing medical plans. The Core-Flex offering focuses on essential coverage for significant medical risks while providing voluntary top-ups for additional flexibility.

Accessible to individuals directly via a large choice of modular top-ups or to employees via a Core-Flex digital experience, the solution is already finding traction. “Even with my wife and I both having full-time jobs here in Singapore, we had to consider a top-up hospitalisation plan as neither of our employers was offering a decent level of medical coverage for our family of four,” shared Romain B., an expat residing in Singapore.

Sébastien Deschamps, Director of Interexpat, emphasised the importance of a more balanced approached to employee benefits in Singapore.

"It is time for HR teams to focus on what truly matters – protecting employees from large financial risks. While flexibility in wellness and supplemental benefits is essential, the core of the package must be solid medical coverage. Our Core-Flex approach allows employers to provide strong base coverage, with options for voluntary top-ups that keep costs manageable," Deschamps explained.

He also highlighted the strain on expatriates, "Expats in Singapore are already feeling the pinch of major expenses like housing and schooling. The last thing they need is inadequate medical coverage. Our solution makes it affordable for employers to offer robust plans while giving employees the ability to enhance their coverage as needed." Deschamps added, "Many expats accept job offers without fully understanding the limitations of their medical coverage, only to face financial risks of escalating medical costs later. It is critical that we tackle this head-on with this new offering, particularly as healthcare benefit costs in Asia Pacific are projected to increase year-on-year."

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