Portable Medical Benefits

Why implement Portable Medical Benefits?

Portable medical coverage is especially valuable to your employees in the event that they are unable to continue their services with you. Such medical coverage ensures that their hard-earned savings are not wiped out during an illness.

Company-based medical benefits cease when an employee leaves the company, retires or is discharged from services. In addition, the employee may be subject to underwriting when he or she joins a new company or purchases his or her own medical insurance. The new medical insurance policy may also exclude the employee from coverage of any pre-existing illness.

With portable medical benefits, the employee is not subject to new underwriting scrutiny and can continue to enjoy continuous medical coverage even when they leave their current jobs, are in-between jobs or retire.

Employers who implement or supplement Portable Medical Benefits will benefit from:

1. Greater competitive edge in employee recruitment and retention
2. Minimised work disruption resulting from employees' financial and medical difficulties
3. Peace of mind in knowing that employees have the coverage most suited to their needs
4. Enhanced employee goodwill and working relationship
5. IRAS employer tax incentive
   

How to implement Portable Medical Benefits?

Portable Medical Benefits Scheme and Provision of Shield Plan are two of the recommended arrangements.

The Portable Medical Benefits Scheme (PMBS) rides on the MediSave/MediShield Life framework and is designed for the provision of inpatient/hospitalisation medical benefits. Under the PMBS, the employer makes an additional contribution of at least one per cent of gross wages (subject to a minimum monthly contribution) to employees' MediSave account every month. The employee may use the MediSave contribution to purchase an individual-based MediShield Life or a MediSave-approved private integrated plan (referred to as 'Shield Plan') to cover his inpatient medical needs.

Any MediSave contribution in excess of the insurance premium will accumulate in the employee's MediSave account and earn interest at the MediSave interest rate, and the employee can then use the savings in the MediSave account to meet future medical needs or those of their dependents.

Please click here for more information on PMBS.