This new year, take healthcare benefits seriously when picking your next job

BESIDES the usual New Year’s resolutions to eat less, exercise more and simply live healthier, consider another resolution to improve your well-being: expecting good healthcare benefits from your employer.

When I started work some 13 years ago, I didn’t even think about – much less ask – what health benefits were offered at the company I was joining. My 22-year-old self merely cared about whether it was a permanent position, and what the salary would be, before blithely signing the employment contract.

Two toddlers (and therefore two lifetimes) later, health benefits are the second thing I ask about, right after wrangling an agreeable salary.

Yet even if you aren’t as old as I am, nor have kids, there are good reasons to pay attention to health benefits when searching for your next opportunity or career move.

Employers know that it is important – and becoming more so

The government itself is taking health benefits seriously. Last year, it raised the minimum mandatory health insurance coverage that employers have to provide for their work permit and S Pass holders.

Since July 1, employers must provide medical coverage of at least S$60,000 per year, quadruple the previous annual claim limit of S$15,000.

This compelled employers to match the level of coverage for local employees too, said Janet Lim, chief human resources officer at engineering and logistics firm Katoen Natie.

“For employers, it’s clear that strengthening healthcare options is crucial in today’s competitive and ageing job market,” she noted. “As things change, businesses see comprehensive healthcare benefits not just as a requirement but also as a key strategy to attract and keep skilled workers.”

Conversely, a lack of good healthcare coverage can make it harder to find and keep good employees, she added.

“Nowadays, people care a lot about their well-being, and good healthcare benefits show that a company cares about its employees. If the healthcare package is not up to par, it might turn away potential hires, and existing employees might start looking for better options.”

Jocelyn Cai, senior manager for people partners at American software company Databricks, echoed this view. For her, corporate healthcare coverage plays a “pivotal role” in attracting prospective talent.

“Offering robust healthcare benefits showcases a company’s commitment to employee well-being and can significantly influence a candidate’s decision-making process,” she explained. “This assurance alleviates the financial burden associated with medical expenses and creates a sense of security, making it a crucial factor for candidates.”

A wide range of coverage

Cai sees corporate healthcare coverage as “a strategic investment” in enhancing employee experience.

Her company’s coverage is wide, including mental health services; chiropractic treatment; traditional Chinese medicine; osteopathy; an extensive maternity plan; and even spectacles, contact lenses, and laser eye treatments.

Coverage for maternity and dependents, in particular, signals a company’s family-friendliness – something for which the government could afford to advocate, to encourage more working adults to have children.

Some larger firms, especially multinationals, offer insurance for families, coverage for maternity expenses for female employees or spouses of male employees, and also in- and outpatient medical care for all dependents.

I myself have never received coverage for my two children’s medical expenses, nor my own maternity expenses. If those expenses had been covered by my employers, the amount of money saved would easily be enough for a second-hand car, even in today’s market!

Another growing area of coverage is mental health. Insurer AIA notes a gradual but clear increase in the proportion of its corporate customers that include mental health coverage in their employee benefits. This has reached 10 per cent in 2023, up from less than 1 per cent pre-pandemic.

AIA chief corporate solutions officer Kenneth Tan added: “We have also observed a progressive shift towards preventive care and offering workplace wellness programmes to ensure that the physical, mental and financial needs of employees are looked after holistically.”

Bearing the cost

In Singapore, the cost of medical care continues to rise. Willis Towers Watson projects a 10.7 per cent rise in 2024, surpassing the global projection of 9.9 per cent.

Organisations should review employee benefits programmes “every couple of years” to ensure their coverage limits can sufficiently cover rising costs of treatment, said Tan.

But Lim added that rising costs also mean greater financial pressures. Her proposed solution: co-payment.

“For a corporate healthcare programme to be sustainable, we are beginning to see a growing trend in co-sharing of medical utilisation costs,” she said. “This is an effective gatekeeper to ensure that healthcare benefits are utilised responsibly and appropriately.”

Good healthcare coverage means healthier, happier and more productive staff

Better coverage means higher business costs – but it can pay off for employers too.

The assurance of updated and comprehensive healthcare coverage, coupled with investments in well-being such as health checks and encouraging good lifestyle habits, should lead to “healthier, happier and more productive employees”, said AIA’s Tan.

I personally would agree. After my second pregnancy, I was referred to physiotherapy for the healing of diastasis recti, or the separation of the abdominal muscles. But I was dismayed to discover that an injury sustained as a result of pregnancy is not claimable under my corporate insurance scheme.

Employees will feel more valued and appreciative if their company provides assurance that they do not have to worry about the cost of seeking treatment for their medical ailments, or those of their children.

And who do you think would work harder: those who feel valued and appreciated, or those who have to worry about mounting medical expenses that cannot be claimed from personal or corporate insurance?

Which brings me to my final point:

If your company’s healthcare benefits aren’t great, get personal insurance as early as possible

This advice comes from Cai, who said that it is particularly important for foreigners and people starting families.

“Employees often think their corporate health insurance is sufficient and they do not need personal plans,” she noted.

But this can be a mistake. “Employees should check if their medical insurance is portable or non-portable, and I would encourage everyone to get additional personal insurance early on in their careers.”

She highlighted the importance of covering gaps. “There are always exclusions in any insurance plan, whether corporate or personal, so individuals should get pre-approvals or confirmation from their insurances ahead of big-ticket non-emergency healthcare bills.”

In this new year, may we all have the ability to choose an employer who can provide better assurance, and better healthcare benefits, for less-stressful years ahead.