Other BriefingsSingapore’s New Medical Insurance Rules for Foreign Workers Are Now in Effect
As of July 1, 2025, foreign workers in Singapore are now covered under a revised medical insurance framework mandated by the Ministry of Manpower (MOM). These updates mark the second and final phase of enhancements designed to strengthen protection for Work Permit and S Pass holders, and to create a more equitable healthcare system for both workers and employers.
The reforms introduce age-differentiated premiums, direct reimbursement to hospitals, and standardized exclusion clauses — each of which reshapes how medical care is paid for and accessed.
Stage one recap and integration with the July 2025 reforms
These reforms build on the first phase introduced in July 2023, which raised the minimum annual coverage to S$60,000 per worker. Under that model, insurers are responsible for 75 percent of the claim amount above S$15,000, with employers co-paying the remaining 25 percent. This cost-sharing structure remains in place under the updated rules.
The 2025 enhancements add further protections and operational clarity without altering the core financial framework that supports Singapore’s foreign worker insurance system.
Expanded coverage and who the changes apply to
The rules apply to all Work Permit and S Pass holders, including those employed in construction, marine, manufacturing, and services sectors. Migrant domestic workers are also included in the updated framework. Employment Pass holders are not affected. All medical insurance policies for eligible foreign workers issued or renewed on or after July 1, 2025, must comply with the new requirements.
Introduction of age-differentiated premiums
Insurers are now required to structure premiums according to two age bands — workers aged 50 and below, and those above 50. The change reflects differences in medical risk profiles and aligns premiums more closely with expected healthcare needs. For younger workers, this may translate into lower monthly premiums.
Older workers may face slightly higher premium rates, but the adjustment comes with the benefit of more tailored and sustainable coverage over time.
The policy ensures that risk and cost are more equitably distributed while maintaining access to care.
New direct reimbursement model for medical bills
Under the current system, insurers must reimburse hospitals directly for covered treatments, eliminating the need for employers or workers to pay upfront and later seek reimbursement. This direct settlement model applies once a claim is approved, offering immediate financial relief and reducing delays in treatment.
For workers, this means they no longer need to navigate complex reimbursement processes or worry about out-of-pocket hospital costs in emergency or inpatient situations. For employers, it simplifies claims and aligns with MOM’s compliance expectations.
Standardization of exclusion clauses across policies
MOM now requires insurers to follow standardized exclusion clauses in their policies. Previously, exclusion terms varied across providers and could be difficult to interpret. The new standard limits the types of conditions or treatments that can be excluded, ensuring consistency and greater transparency. Workers are better protected from surprise claim rejections, and the move enhances trust in the overall insurance framework. It also facilitates easier policy comparisons when employers or workers are selecting coverage.
What should foreign workers do now?
Foreign workers should verify with their employers that their current insurance policy meets the new requirements. This includes confirming their premium category based on age, understanding the insurer’s direct reimbursement procedures, and becoming familiar with the list of standardized exclusions. Workers whose policies were issued before July 1, 2025, may still be under the old terms until renewal, so clarity on policy start dates is important.
This article first appeared on ASEAN Briefing, our sister platform.
