Employee Benefits in Singapore:
Packaged Plans and Customised Plans
Overview

Employee Benefits enhance a firm’s ability to stay competitive on compensation packages offered to prospective employees, and come mainly in 2 forms: Packaged Plans and Customised Plans. Often, many HRs or directors in companies are unsure about which to pick to suit the best interest of their employees, especially when they are new set-ups.

Which plan will we recommend?
Which plan will we recommend?
A quick summary of both plans:
** Exclusions on Pre-existing conditions only apply to Group Hospital & Surgical (GHS) and Group Major Medical (GMM) coverage
Small Medium Enterprises (SMEs) with few employees

For smaller companies such as the Small Medium Enterprises (SMEs), Packaged Plans seem to be the simple go-to solution as they are convenient and do not require any health declarations. On top of that, the prices are as seen on brochures which provides transparency to the audience and a good head start for companies who are new to this, with the common coverages usually listed in the brochure.

As most SMEs also worry about the rising cost of their medical insurance due to high claims throughout the year, we are glad to break the news that Packaged Plans are running on portfolio-rated basis. This means that the insurer will not increase the premium just because you’ve had a year with high claims, but rather look at their entire portfolio of companies as one entity and adjust the premiums accordingly.

Note: Pre-existing cancer and renal failure are permanently excluded under Packaged Plan.

Small Medium Enterprises (SMEs) with few employees

For smaller companies such as the Small Medium Enterprises (SMEs), Packaged Plans seem to be the simple go-to solution as they are convenient and do not require any health declarations. On top of that, the prices are as seen on brochures which provides transparency to the audience and a good head start for companies who are new to this, with the common coverages usually listed in the brochure.

As most SMEs also worry about the rising cost of their medical insurance due to high claims throughout the year, we are glad to break the news that Packaged Plans are running on portfolio-rated basis. This means that the insurer will not increase the premium just because you’ve had a year with high claims, but rather look at their entire portfolio of companies as one entity and adjust the premiums accordingly.

Note: Pre-existing cancer and renal failure are permanently excluded under Packaged Plan.

Larger companies with more employees

On the other hand, larger companies such as MNCs may prefer Customised Plans if it is important for them to be able to customise certain coverage to the employees’ needs.

Customised plans have a wider range of health care services to offer, and employees would be entitled to benefits such as those relating to health screening, maternity and optical.

Clients will also benefit from more policy entitlements such as experience refund¹ and letter of guarantee services². On top of that, one advantage that would prove useful for MNCs would be that coverage for Customised Plans can be extended to overseas entities related to their Singapore office.

It will be good to note that for Customised Plans, companies are expected to provide detailed health profiles of employees and claims experience in order for insurers to work out the pricing, and the application process can take some time depending on the complexity of each case. This also means that the coverage for pre-existing conditions will be subject to health assessments by the insurers.

Last but not least, Customised Plans are experienced-rated – this means that insurers assess the usage and claims experience of a particular company on that year alone to derive premium prices. In the event that a company’s claims have been high for a particular year, they may be subject to a higher premium or capped benefits in the following year.

Larger companies with more employees

On the other hand, larger companies such as MNCs may prefer Customised Plans if it is important for them to be able to customise certain coverage to the employees’ needs.

Customised plans have a wider range of health care services to offer, and employees would be entitled to benefits such as those relating to health screening, maternity and optical.

Clients will also benefit from more policy entitlements such as experience refund¹ and letter of guarantee services². On top of that, one advantage that would prove useful for MNCs would be that coverage for Customised Plans can be extended to overseas entities related to their Singapore office.

It will be good to note that for Customised Plans, companies are expected to provide detailed health profiles of employees and claims experience in order for insurers to work out the pricing, and the application process can take some time depending on the complexity of each case. This also means that the coverage for pre-existing conditions will be subject to health assessments by the insurers.

Last but not least, Customised Plans are experienced-rated – this means that insurers assess the usage and claims experience of a particular company on that year alone to derive premium prices. In the event that a company’s claims have been high for a particular year, they may be subject to a higher premium or capped benefits in the following year.

So, have you decided which is the best for your company?
Speak to us today!
Speak to us today!
¹Experience refund is the portion of the policy’s premiums that is returned to the policyholder (company) if the claims made by the company’s employees is better than expected.
²Letter of Guarantee (LOG) is an assurance of payment offered by insurers to hospitals, on behalf of a patient, for the portion of the hospital bill covered by insurance. The purpose of the LOG is for patients to obtain a waiver of the upfront cash deposit required by the hospital.