SINGAPORE, 2025-06-18 12:53:00 – Great Eastern, an insurer, has stopped issuing pre-authorization certificates for policyholders admitted to Mount Elizabeth hospitals in Novena and Orchard, effective Tuesday, June 17.
This move aims to manage rising healthcare costs, impacting how policyholders access care at specific private hospitals.
- Great Eastern will no longer issue pre-authorization certificates for Mount Elizabeth hospitals.
- The insurer cited higher costs at certain private hospitals as the reason.
- Policyholders can still receive treatment and submit claims as usual.
What does this mean for policyholders? This change, stemming from Great Eastern’s observation of rising costs at certain private hospitals, impacts how some patients access pre-approved coverage.
Pre-authorization, essentially the insurer’s green light for medical expenses, is now unavailable for patients at the Mount Elizabeth locations. However, the insurer clarified that this change does not affect existing coverage. Other hospitals and day surgery centers are unaffected.
A Great Eastern spokesperson stated the company’s motivation: “We have observed that, over the past few years, certain private hospitals have been charging significantly more for similar treatment.” The company assures policyholders that coverage remains intact, allowing them to receive treatment and submit claims as usual.
Both Mount Elizabeth hospitals can still issue electronic letters of guarantee or file claims to Great Eastern. These claims will be evaluated based on policy terms, and all eligible claims will be paid. Patients can also request letters of guarantee to waive pre-admission deposits, potentially up to S$50,000 (US$38,900) in private hospitals. Any pre-authorization certificates issued before June 17 will be honored.
Hospitals Respond
The two Mount Elizabeth hospitals are part of IHH Healthcare Singapore, the largest private healthcare provider in the country. Gleneagles Hospital and Parkway East Hospitals, also owned by the group, are not affected by this change.
IHH Healthcare Singapore expressed its “surprise” at the move, stating they have been in active discussions with Great Eastern over recent months. Mr. Yong Yih Ming, the group’s chief operating officer and chief executive officer of Mount Elizabeth Hospital, said, “We do not agree with GE’s claim about higher prices at two of our hospitals for similar procedures and case profiles.”
Mr. Yong added that the hospitals have different specializations and advanced equipment, catering to complex cases. Great Eastern policyholders undergoing treatment with specialists at Mount Elizabeth hospitals will continue to have cashless access. “This ensures that these patients do not need to worry about cash outlay for their treatment,” said Mr. Yong.
Great Eastern encourages policyholders to contact its medical care concierge for information on their treatment options, including both public and private hospitals, along with cost breakdowns. This service aims to offer peace of mind and help with informed decisions.
AIA Singapore stated they are working closely with the Life Insurance Association of Singapore, the Ministry of Health, and medical associations to manage healthcare cost inflation.
Deeper Dive: Healthcare Inflation and Insurance in Singapore
The recent decision by Great Eastern to discontinue pre-authorization certificates for Mount Elizabeth hospitals underscores a growing concern: healthcare cost inflation in Singapore. This trend is complex, driven by multiple factors that insurance companies, hospitals, and authorities are actively addressing. This situation impacts both healthcare providers and patients alike.
The move to manage costs is a part of a wider effort. As noted, AIA Singapore is working with various stakeholders to tackle this issue. To understand it better, it’s important to dissect the underlying drivers and potential solutions.
Understanding the Forces at play
Healthcare inflation is not unique to Singapore. Though, several elements contribute to its severity within the country.
- Aging Population: Singapore’s population is aging rapidly [[2]]. Older individuals generally require more medical care, contributing to increased demand and, consequently, higher costs.
- Technological Advancement: The introduction of advanced medical technologies improves treatment options. This is a great benefit, but these technologies often come at high up-front costs, wich can drive up the price of healthcare.
- Increased Demand for Private Healthcare: A growing number of Singaporeans are opting for private healthcare.Private hospitals and clinics often offer premium services and shorter wait times, leading to greater demand and higher costs.
- Rising Labor Costs: The healthcare sector is facing growing expenses. The costs for skilled medical professionals are rising, which impacts the operational costs for hospitals and clinics.
These factors combine to create pressure on the healthcare system as a whole. As insurers like Great Eastern seek to manage the impact of these forces, it’s vital to be informed.
How Are Insurers Responding?
Insurance companies are taking several steps. These help manage costs while protecting policyholders.
- Negotiating with Hospitals: Insurers negotiate prices with private hospitals. This helps ensure patients receive care at a reasonable cost.
- Promoting value-Based Care: This method focuses on quality of care and the patient’s outcome. Insurers will pay more for effective treatments and attempt to ensure those receiving care get it in a timely and cost-effective manner.
- Using Technology: digital tools and data analysis platforms help identify healthcare trends and reduce unneeded procedures or hospitalizations
- Educating Policyholders: Insurers provide educational resources and tools to help policyholders make informed decisions about their care.
Insurers regularly review pre-authorization policies, like the one outlined for Mount Elizabeth Hospitals. This allows them to respond directly to cost fluctuations.
What Can Policyholders Do?
Policyholders have several options to navigate the landscape of rising healthcare costs.
- Understand Your Policy: Carefully review your health insurance policy to understand its coverage details, including claim procedures, and pre-authorization requirements.
- Seek Second Opinions: If a serious medical condition requires an expensive treatment, it’s wise to get a second opinion.
- Explore Options: If possible,explore treatment options at both public and private healthcare facilities. Public healthcare facilities generally have lower costs than private insurance.
- Communicate With Your Insurer: If the insurer gives a concierge service, use it. These services help policyholders understand their options and navigate the complexities of healthcare costs.
What’s Next?
The situation is continually evolving. efforts to manage healthcare inflation will require collaboration among several stakeholders within Singapore.
Healthcare cost inflation continues to be an area of significant focus in Singapore, and these measures are critical. Policy change, technological changes and a new outlook from the healthcare sector are needed. Discussions about how the Ministry of Health can implement solutions are ongoing.
frequently Asked Questions
What is healthcare cost inflation? Healthcare cost inflation refers to the increasing price of healthcare services, including medical care, tests, and medications.
Why are healthcare costs rising? Costs are increasing due to the aging population, advancements in technology, and increasing demand for private healthcare.
What are the implications of pre-authorization changes? These changes impact which medical providers are included in the insurance policy. Policyholders can still access treatment and claim expenses if they have a policy with that insurer.
How can I manage the impact of healthcare inflation? Start by understanding your policy, seeking second opinions, exploring diffrent treatment options, and communicating with your insurance provider.
What role does the government play? The government helps monitor healthcare costs, and it has enacted policies to contain this inflation. Private and public entities are seeking to provide greater cost containment.
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