Group hospital and surgical insurance cost per employee in Singapore
Key takeaways
- Small-group GHS plans are priced per head by age band and plan tier, with 9% GST added.
- Plan tier, mainly the ward class, is the largest single choice the employer makes.
- Older age bands pay more on the same plan, so the age profile of the team sets the base.
- IRAS limits the tax deduction for employee medical costs to 1% of total remuneration, or 2% under qualifying schemes.
How small and large groups are priced
Small groups are priced on portfolio rates. The insurer sets a rate per head by age band and plan tier, from the claims of its whole SME book. One company's own claims do not move it.
Larger groups are usually experience-rated. Their own claims history sets the renewal premium. The headcount at which a group moves to experience rating varies by insurer.
| Price driver | Direction of per-head premium |
|---|---|
| Older age band | Higher |
| Private hospital or single-room ward plan | Higher |
| Restructured hospital ward plan | Lower |
| Outpatient, specialist, dental or major medical rider | Higher; each rider priced separately |
| Dependants covered | Higher total; each person priced |
| Co-payment or deductible on riders | Lower |
| High claims on an experience-rated group | Higher at renewal |
| Manual occupations or high-risk industry | Higher with some insurers |
Insurers apply their own medical cost trend to every group before any experience adjustment. The trend reflects hospital bill growth, new treatments and claim frequency across their book. Ask the broker for the trend assumption behind each quote, because it differs by insurer.
What a GHS plan pays for
GHS insurance pays hospital and surgical bills for employees, up to the plan's limits. The core benefits are:
- Room and board. A daily limit tied to a ward class and hospital type.
- Surgical fees. Surgeon and anaesthetist fees, often by procedure schedule.
- Inpatient and day surgery charges. Theatre, drugs, tests and consumables.
- Pre- and post-hospitalisation treatment. Specialist visits and tests before and after admission.
Plan tier mainly sets the ward class. An employee admitted above the plan's ward has the claim pro-rated. The plan applies a pro-ration factor, and the employee bears the balance.
The Ministry of Health (MOH) publishes hospital bill amounts and fee benchmarks by procedure and ward class. Employers use them to check whether a plan's limits match real bills.
Riders add outpatient GP care, specialist care, dental and major medical cover. Each rider adds its own per-head premium. Common choices are compared in group medical insurance for SMEs.
What sets the premium
Seven factors move the per-employee cost.
Age profile
Age is the main rating factor on portfolio rates. A team averaging 45 costs more than a team averaging 28 on the same plan.
Plan tier and ward class
Private hospital single-room plans cost the most. Restructured hospital ward plans cost the least.
Riders
Outpatient, specialist, dental and major medical riders each add premium. Outpatient GP riders are used often, so claims are frequent.
Dependants
Covering spouses and children adds a premium for each person covered. Insurers usually require dependant cover to apply to all eligible employees in the same category.
Group size
Small groups are priced from a portfolio rate. Groups large enough to have credible claims data are priced on their own experience.
Claims experience
For experience-rated groups, high claims in one year raise the renewal premium. One large cancer claim can move a 30-person group's rate.
Industry and occupation
Some insurers load premiums for manual occupations or high-risk industries. Office-based groups rate at the standard level.
Statutory baseline
GHS cover is not compulsory for Singapore citizens and permanent residents. Two statutory rules set the baseline it sits on.
- Sick leave. Under the Employment Act, an employee with 6 months' service gets 14 days of paid outpatient sick leave a year. Paid hospitalisation leave is 60 days, which includes the 14 outpatient days.
- Work Permit holders. Employers must buy medical insurance of at least S$60,000 a year per Work Permit holder. For claims above S$15,000, the insurer pays 75% and the employer 25%.
A GHS plan for foreign staff can replace or top up the statutory minimum, depending on its terms. The employer should confirm the plan meets MOM's S$60,000 minimum before relying on it for a Work Permit holder.
Worked examples
Example 1. A 10-person design studio, all staff aged 30 or under. It is priced on portfolio rates in the youngest age band. Plan tier and any outpatient rider set most of the cost.
Example 2. A 40-person distributor with an average age of 44, on a mid-tier ward plan. Staff moving into an older age band raise the per-head rate at renewal. Adding dependants would add the largest increase.
Example 3. A 250-person logistics firm with a mixed workforce. Experience-rated on its own claims. Two large inpatient claims last year drive the renewal. Work Permit holders sit on a separate statutory plan.
Tax treatment
IRAS caps the deduction for employee medical expenses at 1% of total employee remuneration. The cap is 2% where the company meets the conditions of a qualifying scheme, such as the Portable Medical Benefits Scheme or Transferable Medical Insurance Scheme. Amounts above the cap are not deductible.
For example, a company paying S$3 million in total remuneration can deduct up to S$30,000 of employee medical costs at the 1% cap. GHS premium, rider premium and direct medical spend above that sum are not deductible.
The employer can manage this by choosing the plan tier and riders with the cap in view. Co-payments on outpatient riders also reduce the total medical spend.
Figures checked 14 November 2026.
Frequently asked questions
What does a basic group H&S plan cost per employee a year?
There is no single figure. Age band and plan tier set the per-head premium on SME portfolio rates. A ward-class plan for staff under 30 sits at the low end; a private hospital plan for staff over 50 sits at the high end. A broker quotes several insurers on the group's census.
Does adding outpatient GP cover double the premium?
Not necessarily, but outpatient riders add a separate per-head premium. GP visits are frequent, so outpatient claims are high in number. The rider's cost depends on the visit limit and co-payment chosen.
Can a 2-person company buy group insurance?
Yes. SME group products accept very small groups. Small groups are priced on portfolio rates rather than their own claims. Underwriting questions may apply where the group is very small.
Are pre-existing conditions covered under group plans?
It depends on the plan and group size. Many SME plans exclude pre-existing conditions for an initial period of continuous cover, and some exclude named conditions permanently. Larger groups can often negotiate pre-existing cover.
Sources
General information only, not advice on any particular policy. Cover depends on the policy wording and the insurer's terms.