Thursday

Can Company Cap the Outpatient Medical Cost?

Can the company set a cap on the outpatient medical expenses?
For example, some company set the cap the employees can reimburse only S$20 per visit and S$600-S$700 per year.

Under the Employment Act Part IV, the employer shall pay for the employee medical consultation for the employees who are covered under Part IV. (workman or any employee salary at S$1600 and below, $2000 and below (with effective 1-1-2009) )

Even if the company has its policy to pay $20 per visit, and if the employee actual medical consultation is at above the limit, the company is obligated to pay the actual amount. Hence, the medical limit per visit or per year shall not apply to this group of employees.

However, most of the receipt given by the clinic does not indicate clearly on the total cost of the medical consultation and medicines. Hence, the limit set by the company eg. $20, is to govern this grey area that usually the consultation cost shall not exceed $20. However, if the employee is able to show proof on the actual medical consultation charges, employer still need to pay for.