Health Insurance Plans in Singapore and How it is Unique from the Rest of the World
- jcnoble00
- Nov 17, 2022
- 5 min read
Updated: Nov 30, 2022
In order to talk about health insurance plans works in Singapore, it is important to first discuss how the health care system actually works. Unlike the United States, in Singapore, everyone has access to health care. The people living in Singapore are on average healthier and their life expectancy is four years longer than citizens of the United States. What is most shocking about this is that Singapore does this in a cost-effective way. The United States spends close to 17% of the gross domestic product on health care, Singapore spends 5%. So the first question is, how can Singapore have such an effective system and not break the bank? The answer is obviously multilayered but it is done through a combination of quality care and a national savings program called Medisave. Essentially, throughout your career, workers will pay into a savings account which grows in value over time and can be used later when it is needed. This amount (which is about 6-10%) is automatically reduced from the salaries of the citizens in Singapore. This percentage is based on how much a person makes and their age. Patients are expected to make fairly large co-payments for medical services so it provides more responsibility for the patient and more accountability. This system places more of an emphasis on personal responsibility as it is their money that they are spending. This also means that providers are less likely to perform procedures that are not really necessary. As a result, you end up with more consumer-driven healthcare where the relationship between the provider and the patient is at the forefront.
One issue with this system though is that because people are using their own money to pay their health care bills, it is a common complaint that people could run out of money. This would only be the case if an individual was unfortunate enough to have major health problems throughout their whole life. In order to prevent this, there are possible health insurance alternatives. However, these are not very popular. Most people will rely on Medisave and the Integrated Shield Plans, or family members before exploring these other alternative options. It is common that in some rare situations very poor people will not have the saved money that is needed and the government will help out in this case, but this is not normal and the vast majority of people in Singapore have the savings account. In Singapore, you don't see widespread people who don't have health insurance. The hospitals in Singapore are also welcome to all, whether the individual is poor or rich. Due to the hospitals being open and the cheaper pricing options, many Americans have actually gone to Singapore in order to have medical procedures done.
So how does Universal Health Care Coverage Actually Work?
This all sounds great, and in many ways, it is a wonderful system. However, before we come to these types of conclusions we must understand the inner workings of how this system actually functions. The healthcare system in Singapore is driven by the belief that all stakeholders share responsibility for attaining universal health coverage. This system that is used in Singapore is often known as the 3Ms which are made up of the following systems:
MediShield Life: this is a basic health insurance plan that is required for citizens and all permanent residents. This plan provides lifelong protection against large bills and costly outpatient treatments. It was launched in 2015 to replace the older MediShield plan.
MediSave: This is the national savings fund, which helps to cover out-of-pocket costs. This amount is automatically deducted from the salaries of all the people who work in Singapore. The percentage which is taken out can vary based on age and other factors. This amount is mandatory and nobody can get out of this. One interesting thing about this is that these accounts can be used for family members as well.
Medifund: This is the government safety net for extremely poor Singaporeans who cannot cover their out-of-pocket expense, even with the MediSave.
In Singapore, the role of the government and the Ministry of Health is to promote good health and reduce disease, along with providing affordable care. The government relies on competition and the market to improve service but will take measures when the costs get too high. Through many boards and organizations, the government is able to regulate the health care system and the needs of the people. This can be seen in the image above.
As a result of these plans, the government really cares for the vast majority of the people with only a minimal amount that they have to pay out of pocket. However, in the case that a person did want to get private health insurance, they would be able to obtain this through Integrated Shield Plans which ride on MediShield Life. These plans offer different benefits and can be paid for using MediSave. Interestingly, private insurance has become more popular of late and the Ministry of Health had to require that the plans have a minimum of five percent copay with an annual cap in order to limit the number of people who would purchase them. Another article by the Ministry of Health also talked about some of the issues that doctors are having with these Integrated Shield Plans and how they don't allow people to see their regular doctors. These plans also exclude many specialists and make these plans, "highly exclusive." Which is similar to the problems that we have in the United States. It will be interesting to see how Singapore handles these issues moving forward.
An article in Forbes describes how it is so refreshing and nice to work as a doctor in Singapore because they know how much everything will cost and they can prescribe what the patient actually needs not what the health insurance wants for the patient. The author of this discusses how putting the power back in the hands of the people will really improve any health care system, like it has for Singapore.
Buying health Insurance in Singapore:
Conclusion:
This video pretty much covers everything that we discussed in this blog post. I learned that the system in Singapore is a lot smoother and seems to be more personalized and places more responsibilities on the individual. It is also more of a community-based approach which we don't really have here in the United States. I hope this blog post has sparked your interest and you will have the opportunity to visit Singapore sometime in the. future, I know I would like to. Thanks for reading and be on the lookout for my next blog post on healthcare and insurance plans in China.
Resources and References:
The Straits Times
Seedly
Singapore: International Health Care System Profiles
Forbes Magazine
April International Health Insurance
The Independent News and Media
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