Private insurers in Singapore are engaged in a race to the bottom as they are offering very attractive terms to encourage sign-ups and win market share, the Minister for Health, Mr Ong Ye Kung, has said.

Speaking at the 25^th Anniversary Members’ Night of the Securities Investors Association (Singapore) on 12 July, Mr Ong that there are Integrated Shield Plans (IPs) that promise no claim limits, and riders to protect policyholders from co-payment. IPs are medical insurance plans that consist of both the government-run basic health plan (MediShield Life) and additional private insurance coverage that private insurance companies offer.

'Buffet syndrome' in health insurance

Mr Ong said, “These features look generous and very attractive and give absolute peace of mind, but they have also aggravated the buffet syndrome and are pushing up healthcare costs.”

Explaining the 'buffet syndrome,' he said, “You see a doctor for a certain condition, and the first question the nurse asks is whether you are covered by IPs and riders. If yes, you may be prescribed more diagnostic tests and more expensive treatments. As a patient, you are happy to receive them, because the insurance company will pay for it anyway. This is the classic ‘buffet syndrome’. It is already paid for, so eat more. It is natural human behaviour happening all over the world, especially in healthcare.