Workgroup in talks with insurers to plug coverage gaps for workers over 65

Yesterday we posted an article regarding the launch of Re-employment.sg, the government's initiative to assist employers in hiring older workers.

We are glad that Today's article reported that measures are also being made to help with insurance coverage for older workers.

"WITHOUT steps to correct the situation, mature workers who wish to stay on the job once re-employment laws kick in could find a crucial element missing from their contract — medical insurance coverage.

Right now, the last entry age cap practised by the market to insure mature employees stands at 64.

Yesterday, the Tripartite Implementation Workgroup revealed it will soon release a list of insurers that have agreed to raise it to 65. And it hopes they can be persuaded to set the bar even higher.

“At 64 and 65, we are still okay. But we are talking to the insurance agencies about raising this cap,” said Mr Koh Jun Kiat, executive director of the Singapore National Employers Federation (Snef), at a forum to launch a new re-employment Web portal and guidebook.

He also raised the issue of allowing a mature worker to take a break before he starts his re-employment term.

“If the break is too long, there is a problem with continued medical insurance,” he said, explaining that the current standard for insurers to continue coverage without re-evaluation is up to a month.

He added: “We are also talking with insurance agents about lengthening this gap a little bit.”

At the same time, Mr Koh said, the 2012 legislation will be shaped so as to allow companies the option to let employees begin their re-employment term immediately.

“We will take this up to see whether the law can be crafted in such a way he can be re-employed the day after. So, there is no need to go for a break.”

Applauding these moves as a “natural progression forward”, Mr David Ang, executive director, Singapore Human Resource Institute (Shri), told Today: “Life expectancy has gone up. It would be good for insurers to review past practices which might have been based on parameters that have undergone some transformation.”

But he also proposed that companies consider a portable medical insurance scheme, with coverage at work tied not to companies but individuals.

To this end, he said, the Shri — along with some insurers — will next month launch such products.

Meanwhile, Mr Leong Sze Hian, president of the Society of Financial Service Professionals, warned of the costs of raising the last entry age cap beyond 65. “The older they are, the higher would be their insurance claim. So there will be higher premiums set for mature workers. Are employers willing to pay the higher premium?”

He suggested that the Government make it compulsory for every Singaporean to take up a national basic health insurance plan."

Article and Image Source.
Follow Jorbb on Twitter, Friendfeed and Facebook Group. Now on Mobile/iPhone!