[SINGAPORE] Insurers in Singapore are not following Great Eastern’s footsteps to suspend pre-authorisation certificates for admission into Mount Elizabeth Hospital and Mount Elizabeth Novena Hospital. Prudential and AIA told The Business Times that they are still issuing pre-authorisation certificates for any healthcare institutions.
In a surprise move on Tuesday (Jun 17), Great Eastern announced the suspension of pre-authorisation certificates for admission into the two Mount Elizabeth hospitals, citing “significantly higher costs” for medical procedures there than at other private hospitals.
IHH, the owner of the Mount Elizabeth hospitals, claims that this was a unilateral move on the part of Great Eastern.
Pre-authorisation refers to the insurer’s approval of coverage for medical costs before treatment.
The Ministry of Health (MOH) said that it is currently in talks with Great Eastern to better understand the impact of its decision to suspend pre-authorisation certificates for Mount Elizabeth Hospital and Mount Elizabeth Novena Hospital.
Among other insurers contacted, Prudential noted that median claim costs at certain private hospitals are higher than at others for similar procedures. The insurer did not disclose which private hospitals these were.
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“We recognise the importance of ensuring healthcare remains accessible and premiums affordable for customers,” said Prudential.
Managing medical costs for Prudential and AIA includes engaging in discussions with healthcare providers. Part of Prudential’s strategy has been to partner hospitals such as Mount Alvernia, Raffles and Thomson Medical, as well as various day surgery and outpatient clinics.
The insurer said: “With a robust hospital partnership programme in place, Prudential is able to discuss and manage costs with preferred healthcare partners and ensure quality of care for customers.”
At AIA, the focus has been on providing value-based healthcare. The insurer is working with various stakeholders to keep healthcare affordable.
AIA said: “We continue to work closely with the Life Insurance Association of Singapore, the Ministry of Health and professional medical associations to manage healthcare cost inflation, to ensure the continued accessibility of quality healthcare for our customers.”
Raffles Hospital and AIA Singapore signed a memorandum of understanding in January 2025 to provide greater access to healthcare and co-create innovative solutions to drive quality of care and patient outcomes.
“We also continue to maintain direct relationships with healthcare providers through our AIA Quality Healthcare Partners, our panel of over 600 private specialist doctors, and utilise pre-authorisation for private hospital admissions and day surgeries,” said the insurer.
Income, which does not practise pre-authorisation, reviews its scope of coverage annually, which includes assessing medical inflation and claims experience across medical institutions, among other factors. This enables the insurer to identify patterns, appropriate measures and engage with healthcare providers to achieve sustainable value for policyholders.
“With the findings, we are looking to enable our policyholders to make informed choices when selecting a healthcare provider,” said Income.
“Our focus is on encouraging more transparent and thoughtful healthcare consumption, while ensuring long-term affordability for our policyholders,” it added.
MOH said that it regulates the key parameters of Integrated Shield Plans (IPs) for financial sustainability. However, individual insurers’ changes to administrative processes such as the pre-authorisation framework and partnerships with private providers are based on their commercial and actuarial considerations.
The ministry added: “However, IP insurers would have to ensure that policyholders continue to be able to access the full benefits of their policies in accordance with the terms and conditions for claims, as stated in their policy contracts.”
