Insurers were urged to review the benefits of their integrated shield plans by the Life Insurance Association of Singapore today.

This is in line with the Ministry of Health's announcement earlier this year about the adjustment of Medishield premiums from December 1, 2008 to match an increase in benefit for Singaporeans.

As Medishield is integrated in to all Medisave-approved pri ate health insurance plans, LIA is encouraging insurers to increase their benefits in tandem with the enhanced coverage offered by Medishield.

The increase in benefits is in line with the rise in healthcare costs. According to MOH, the healthcare inflation rate for 2007 was 6.2 per cent compared to an average of 2.4 per cent per annum during the preceding five year period.'

In a StraitsTimes article dated July 25, 2007, hospital charges in Government Restructured Hospitals increased by 10 to 30 per cent between 2005 and 2006.

LIA President DarrenThomson said: "The increase in benefits is necessary and timely to ensure that policyholders continue to enjoy sufficient protection against rising healthcare costs.

"Leaving benefits unchanged is not in the best interests of policyholders as they will be bearing a higher proportion of their hospital bills in the long run. Such an increase in benefits is likely to lead to higher premiums as insurers will have to keep their plans sustainable while accommodating higher claim costs."

LIA has also advised members to keep their healthcare plans affortable. It added that the issue of premium adjustment would be at the discretion of individual insurers.