Introduction

On 26 November 2025, the Ministry of Health announced major changes to the Integrated Shield Plan (IP) riders to address their unsustainable increase in premiums and to enhance affordability. These changes will take effect from 1 April 2026 and represent a significant shift in the design and coverage of IP riders for hospital insurance.

Existing IP Rider Structure (Before Changes)

Previously, typical benefits of IP riders included:

• Deductible Waiver: Covering up to $3,500 for public hospitals (A ward) or private hospitals, allowing claims from the first dollar.
• Reduced Co-payment: Lowering co-payment from 10% to 5% of the bill, after deductible.
• Co-payment Cap: Capping co-payment at $3,000, limiting out-of-pocket expenses.

While providing peace of mind by having most of your bills covered, these features inadvertently contributed to the rapid premium escalation due to frequent and excessive claims.

New Changes (Effective from 1 April 2026)

Key changes include:

• No Deductible Coverage: New IP riders can no longer cover the minimum IP deductible.
• Higher Co-payment Cap: Annual co-payment cap increases from $3,000 to $6,000.
• Expected Premium Reduction: Premiums for new riders are expected to drop by around 30% on average, with more savings going towards older policyholders.
• Transition Period: Existing riders may still be purchased until 31 March 2026. However, riders bought between 27 Nov 2025 and 31 Mar 2026 will be required to switch to new riders no later than their next renewal after 1 April 2028.
• Grandfathering: IP riders bought before 27 Nov 2025 may continue with their existing coverage, but this is subject to the insurer’s decision to continue offering it.

Implications of the New IP Rider Design

1. Higher Out-of-Pocket Expenses

With the new IP rider, you must now bear more out-of-pocket expenses since the deductible can no longer be covered, and the co-payment limit is raised to $6,000. This out-of-pocket expense could be partially offset by MediSave based on its applicable withdrawal limits.

2. Smaller Bill Sizes Not Covered

Bills below the deductible amount (e.g., minor procedures such as gastroscopy, endoscopy, or sleep test) will not be claimable under the new rider, increasing out-of-pocket spending for smaller treatments.

The following examples illustrate the impact of the new rider for different bill sizes. These assume that the existing rider provides a deductible waiver and requires 5% co-payment.

Example 1 – Endoscopy Procedure Costing $3,500

For smaller bill sizes that fall within the deductible amount, you will be required to pay the full bill.

Example 2 – Cataract Surgery Costing $10,000

For smaller bill sizes above the deductible (say $10,000), you will bear proportionally higher in terms of out-of-pocket expenses with the new rider.

Example 3 – Major Surgery Costing $100,000

For huge bill sizes (say $100,000), a large part of the bill is still being covered by the new IP rider.

3. Lower Premiums

New IP riders are expected to be about 30% cheaper, translating to around $600 in annual savings for private hospital riders and around $200 for public hospital riders, with older policyholders enjoying higher savings.

Havend’s Advice on IP

1. Consider Your Healthcare Expectation

Our guide to purchasing an IP has always been based on one’s healthcare expectations. If you are satisfied with staying in a subsidised public hospital (B2/C wards), there is no need to buy an IP as your MediShield Life would be sufficient.

However, if you want the option of higher ward type or even in private hospitals, then you will need to consider an IP.

Affordability of IP is also an important financial consideration, not just on the current premium level but also on-going premiums.  

Another benefit of an IP plan is that it offers additional benefits in covering pre- and post-hospitalisation expenses, hence lowering your out-of-pocket expenses.

 2. Consider Your Need for a Rider

If you want to make sure that the deductible is paid by insurance and/or that you only have to pay a limited co-payment, then you should buy an IP rider.

Another benefit of buying an IP rider is that it offers additional cancer-drug benefits, including treatments outside the cancer drug list. Without a rider, you may have to pay more for cancer drugs and have no access to drugs outside of the cancer drug list.

The current rider also caps a person’s co-payment to just $3,000. However, this kind of rider is very expensive as premiums have been escalating over the years. If you want a more affordable option, you can opt to switch to the new rider.

Under the new rider, the deductible will have to be paid by the policyholder. Also, the co-payment cap is now higher at $6,000. This means that the new rider will not cover smaller bill sizes. However, you may save an average of 30% in terms of premiums paid.

3. Further Considerations

Current policyholders should review whether retaining their existing rider is preferable, balancing premium savings against more comprehensive coverage.

There is no action needed for those holding to their existing rider (bought before 27 November 2025), as insurers have yet to announce their new rider. The new riders must be available by 31 March 2026.

Updated on 28 November 2025
For those intending to upgrade or downgrade their rider between 27 November 2025 to 31 March 2026, there is no requirement from MOH for the rider to be transitioned to the new IP rider requirements. While some insurers have stated that their riders can still be renewed under the existing policy clauses, it is unclear at this moment what their approach will be, and we can expect them to provide clarity in the coming months.

For new IP rider purchasers (on and after 27 November 2025), there is no rush to buy an existing IP rider before 1 April 2026, as any rider bought must be transitioned to the new IP requirement eventually.

Conclusion & Ongoing Monitoring

This latest change announced by MOH aims to address the unsustainable premiums in IP riders and is a step forward in helping to shift the unhealthy behaviours of medical consumption and to bring about greater stability in hospitalisation insurance.  

We are monitoring the evolving IP landscape and may provide further updates in due time as insurers announce their product offerings.

Reference: MOH Announcement on new IP rider changes 

This is an original article written by Eddy Cheong, CEO of Havend.