By Vivienne Ong
Marketing Lead, MoneyOwl

Last week, news broke that Great Eastern would temporarily pause pre-authorisation certificates for admissions to Mount Elizabeth Hospital. 

To the average policyholder, this might sound like a removal of benefits. But for many, it raised a more fundamental question:

What even is pre-authorisation, and why does it matter for my insurance coverage?

This was a common question surfaced during our recent Insurance 101 webinar on Thursday, 26 June. (replay here!) Even among those who already have hospitalisation plans, terms like pre-authorisation and panel doctors weren’t always clear. 

So let’s break this down: 

💡What is pre-authorisation? 

Pre-authorisation is when your insurer approves the coverage of your medical treatment before it begins. If approved, this means your treatment is covered under your hospital plan, and the insurer will settle the medical bill directly with the hospital.

It’s essentially a “Yes, we cover this treatment” from the insurer.

Why it matters: 

• You avoid paying large sums out of pocket upfront.
• You get clarity on whether your treatment is covered.

💡What is a Letter of Guarantee (LOG)?

A Letter of Guarantee (LOG) is a document your insurer provides to the hospital, essentially saying: 

“This patient is covered. We guarantee to pay up to $X of the bill, based on the policy.” 

Think of it as a formal payment commitment. It reduces your upfront payment and gives both the hospital and patient the assurance that the bill will be settled after the hospital stay. 

In Singapore, patients may require both pre-authorisation and a LOG before undergoing treatment. 

💡What happens if pre-authorisation is paused or denied?

If pre-authorisation is unavailable, you may have to: 

• Pay the full hospital bill upfront, even before knowing if you’ll be reimbursed. 
• Experience uncertainty or delays in getting treatment. 
• Face disputes over what is claimable, especially for expensive procedures. 

❓My insurer has changed the terms of my insurance coverage – what should I do?

First off – don’t panic. 

Your first instinct might be to switch insurers or cancel your policy. But doing so could mean: 

• Losing the benefits you secured when you were younger and healthier. 
• Paying more for a new policy—or ending up with less coverage.

It’s important to review how the changes affect you, and speak to your financial adviser to understand your options before making any decisions. 

Missed our Insurance 101 Webinar? Catch the replay!

We answered many of your burning questions, including: 

• What are panel doctors, and why do they matter? 
• What does “accelerated” mean in a critical illness policy? 
• Should I get critical illness insurance for my child? 
• Is it advisable to convert a whole life plan into a paid-up plan?