Some HRs say, “Our staff already have MediShield Life. Why buy Group Hospital Insurance (GHS) too?”
It’s a fair question — on the surface, it looks like everyone’s already protected. But here’s the catch: MediShield Life doesn’t cover everything. Not even close.
And when employees land in a hospital room or need to see a specialist, that’s when the real gaps show up.
Let’s Get Real: Allowance Isn’t Coverage
Giving your team $300 to $500 a year as a “medical allowance” feels efficient. It’s fast, clean, easy to budget. But when someone needs a CT scan, an MRI, or outpatient surgery — it’s not even enough for a first consult.
With medical costs in Singapore climbing fast, that allowance runs out in one or two claims. The rest? It’s on the employee. And sometimes… it quietly falls back on HR to “do something”.
Where GHS Really Shines — And It’s Not Just Hospital Bills
A good Group Hospital Insurance plan includes outpatient coverage, and even specialist referrals, panel GP visits, and follow-ups.
That means:
- Staff don’t delay treatment because of costs
- Claims are handled by insurers, not HR
- Employees feel protected, not just reimbursed
Especially for Employment Pass (EP) holders — who don’t enjoy the same government safety nets — GHS is not a perk. It’s peace of mind. Most EPs know that a sudden hospitalisation could cost them a month’s salary — or more.
But What About MediShield Life?
Yes, all Singaporeans and PRs have it. But it’s basic — it only covers subsidised treatments in public hospitals, and only up to certain limits.
Private hospital? Specialist outpatient treatment? Foreign staff?
That’s where GHS fills in the cracks — or let’s be honest, the gaping holes.
It’s Not Just Financial. It’s Cultural.
In many companies, the switch from allowance to GHS has nothing to do with claims. It’s about culture.
It tells your team:
“We’ve planned ahead for your worst day — even if it never comes.”
That’s the kind of thinking that wins hearts, not just talent.
In Summary:
Allowances run out. GHS steps up.
And when it comes to staff well-being, being there when it matters always beats being “cost-efficient”.
👉 Book a free 15-min review with us — it might just save your HR team the next headache.