Committee looking into doctor panel dispute has tough job to satisfy all

IT will come as a relief that the government is appointing a committee to look into the public spat between the Singapore Medical Association (SMA) and the Life Insurance Association (LIA) Singapore over recent measures by insurers to rein in cost escalation in private healthcare insurance.

SMA, which represents medical professionals in Singapore, is irked by the fact that all seven insurers that offer the Integrated Shield Plans (IPs) have established panels of approved doctors that are limited in composition and size. This effectively puts non-panel doctors at a disadvantage as some patients are forced to ditch their preferred doctors to fully realise the benefits of coverage. SMA, which is also unhappy that the insurers do not disclose the criteria in which they select doctors to be on the panel, noted that panel doctors are mostly paid at the lower end of Ministry of Health fee benchmarks.

LIA, on the other hand, has argued that these initiatives are necessary to keep a lid on rising costs that have translated to rising premiums borne by policyholders. It said SMA's call for panels to be expanded to include all private specialists may lead to higher claims, and consequently, significant rise in future premiums. The association has also warned that the risk pooling effect of insurance may "break down" if the IP claim rate continues to climb, potentially reaching 64 per cent in 10 years.