Media Release: Ensure Affordable Health Care For Foreign Workers

This letter was written on 2 April 2009.

We refer to media reports that the Ministry of Health plans to increase the hospitalisation insurance coverage of foreign workers and foreign domestic workers from $5000 to $HOME welcomes this development. With their low salaries, migrant workers are unable to foot the costs of their healthcare bills. Even though current regulations stipulate that employers are responsible for the cost of their medical expenses, many workers are repatriated when employers find out that the cost of surgery and hospitalisation exceeds the current $5000 limit. As a result, many workers lose their jobs simply because they require medical treatment. The problem is worse for workers who come into Singapore with recruitment debts of thousands of dollars.

We would also like to urge the government to reverse its decision in 2007 to remove subsidies of healthcare costs for foreigners. Even though employers are required by law under the work permit conditions to pay for medical expenses, this does not happen in reality. This is because there is very little protection for workers who have fallen ill and are terminated from employment because of their illness. The Employment Act states that a worker can appeal to the Minister in the event of a wrongful dismissal. However, the redress under the Act does not allow for the worker to obtain his or her much needed treatment. Instead, the employer is just required to either reinstate the employee or compensate him or her for wages lost. The compensation amount is usually a fraction of what the medical costs would be. The worker also does not have the right to switch employers freely.

Employers also have to pay upfront in medical expenses and the unsubisidised rate is a deterrent for them, with no guarantee that they will be reimbursed. The scope of the proposed 15,000 hospitalisation coverage will also be limited when employers have to pay the unsubsidised rate.

Migrant workers make significant contributions to our economy. Basic human rights, such as the right to affordable treatment should be accorded to them.