All You Need to Know About the Implementation of Enhanced Medical Insurance for Foreign Workers

In a move aimed at better supporting both employers and their foreign workers in Singapore, the Ministry of Manpower (MOM) introduced an enhanced Foreign Worker Medical Insurance (FWMI) framework. This adjustment, which was first announced on March 31, 2023, requires employers to provide improved medical coverage for their foreign workforce, ensuring better healthcare support.

Here’s a breakdown of the key details you need to know about these changes:

Overview of the enhanced medical insurance requirements

The main objective of the enhanced framework is to ensure that foreign workers receive adequate healthcare coverage during their employment. It aligns with the MOM’s commitment to improving workers’ welfare, while also promoting a fair and supportive working environment for all. This change applies to both Work Permit and S-Pass Holders.

What’s new under the Enhanced Medical Insurance scheme?

The new regulations include a number of key changes to improve the standard of medical insurance for foreign employees, and was planned to be implemented in two stages:

The first stage of enhancements was implemented on 1 July 2023, which increased the minimum annual claim limit from S$15,000 to S$60,000 per year, with a co-payment of 75% by insurers and 25% by employers for claim amounts above $15,000.
The second stage of enhancements will be implemented on 1 July 2025, and includes the following changes:
- Standardisation of Allowable Exclusion Clauses: For all Foreign Worker Medical Insurance policies that have a start date effective on or after 1 July 2025, this list of standardised allowable exclusions will apply.
- Age-differentiated premiums: Premiums for Foreign Worker Medical Insurance will be differentiated into 2 age bands: (1) aged 50 and below and (2) aged above 50. This will make it such that foreign employees aged 50 and below incur a lower premium while those aged above 50 incur a higher premium.
- Direct Reimbursement to Hospitals for Payable Eligible Claims: The insurer will reimburse their portion of the hospital bill to hospitals directly upon admissibility of the medical claim. This reduces the hassle and out-of-pocket expenses of making payment first and then claiming from the insurer afterwards.

What are employers required to do?

For employers, the main thing to ensure is that your foreign employees have sufficient medical coverage under the new scheme. Do note that if you have an existing medical insurance policy for your foreign workers, you can remain on your existing coverage. However, on your next policy purchase, renewal or extension, your policy must meet the stage 2 requirements for policies with start dates effective from 1 July 2025. For more detailed information, you may check out MOM’s website here.

Why this change?

The enhanced medical insurance initiative aims to provide foreign workers with a safety net, ensuring they are not burdened by high medical expenses during their time in Singapore. The goal is twofold:

Improved Health and Well-being: Ensuring foreign employees have sufficient medical coverage helps to maintain a healthy and productive workforce.
Better Protection for Employers: The enhanced insurance framework also protects employers by reducing the financial risks associated with their foreign employees’ medical needs, thus fostering a more secure and reliable working environment

Get the right coverage that you need with eazy

Since it is mandatory to get medical insurance coverage for your foreign workers, we have come up with a comprehensive guide to help you find the Foreign Worker Medical Insurance that best suits your needs.

Consider consulting experienced Singapore insurance brokers like eazy to find the best policy that suits your needs. For more information about how we may assist you, please contact us today.