Singapore has always been known for its robust medical system. Take the recent Covid-19 dilemma as an example. Singapore undoubtedly managed it with preparedness and fast response. And was reported that by October 2020, 7 months into the pandemic, Singapore was able to drop local cases to 0 to 3 cases per day.
But despite its advanced system, it was still hit badly by the pandemic, affecting its healthcare spending.
As of today, Singapore’s health care cost is still significantly increasing even though it thrives on recovering from the pandemic. And healthcare cost is still on the rise due to many contributing factors such as the aging population, medical advancements, and higher operating costs.
Let’s take a look at how healthcare price inflation has become today.
Healthcare inflation in Singapore over the years
Healthcare inflation is inevitable as demand and supply change. And with the increasing population and Singapore’s effort to keep up with medical advancements, it is undeniable that costs would significantly rise.
And one way to measure inflation is by using the Consumer Price Index (CPI), its objective is to measure the average change in prices of commonly consumed goods and services.
Healthcare is among the 10 main categories that are tracked.
As measured by the Singapore Department of Statistics, Here’s how healthcare in Singapore has performed over the years:
Healthcare costs have increased by 37.76% from 2006 to 2021. Speculating an SG$ 10,000 healthcare item in 2006 would initially cost SG$ 13,776 as of 2021 because of inflation!
And considering the effects of the global COVID-19 pandemic in 2021, healthcare is expected to become increasingly expensive throughout 2022 and the years to come.
Average hospital bill size
Humans sadly are not as strong as the fictional superheroes that we see in movies or read in the comics. And in fact - there can be a lot of different reasons why a person could end up in a hospital, eventually. So if you find yourself ending up in a medical situation, you wouldn’t stop yourself from thinking “how much will this cost?”
To simplify, The hospital bill will vary between Public and Private hospitals and subsidy, insurance, and ward type.
To get the average fees, we will include 2 types of treatment, Outpatient and Inpatient.
Outpatient is a kind of treatment where it does not require hospital stays. The average fees are as follows:
S$ 2,300 - S$ 8,477
S$ 7,379 - S$ 32,506
Source: Singapore Ministry of Health
Inpatient treatment usually requires hospital admissions. Day surgeries can be closely tied to inpatient. The average fees are as follows:
S$ 6,670 - S$ 43,100
S$ 18,350 - S$ 89,100
Source: Singapore Ministry of Health
How insurance can help reduce your medical expenses?
Notably, inflation is unstoppable, so it’s much better to prepare for the incoming rising prices. With insurance, paying premiums as early as today can help you be protected from future hospitalization costs.
When choosing a plan, think about your health needs and your family. If you pick a plan with high premiums, more health costs can be covered. This may be good for people with chronic illnesses that need regular care, such as heart-related diseases, diabetes, cancer, etc.
But if you rarely need medical care, you can choose a plan with a higher deductible. Once you’ve paid the maximum deductible fees from your pocket, your insurance can now pay for the remaining covered medical services. You will also most likely save money with high deductibles by paying lower premiums.
As for employees, find companies that could offer you comprehensive health insurance or arrange with your employers to get health insurance coverage. They could help you lower your deductibles or get your premiums paid completely. On a side note, having health insurance from your employer can help you manage your savings extensively.
Not only do employees benefit from having insurance but employers as well. Adding comprehensive health insurance can make your benefits package competitive in the talent marketplace. This can help you attract new talents, retain employees in your company, and improve employee satisfaction significantly.
Public and private healthcare fees will cost almost the same as with Expats. Getting health insurance coverage should be considered to reduce pocket fee spending since government benefits are rarely passed down to those who are not Singapore citizens.
Insurances in Singapore that can help you get cover
Worry not; Singapore has a wide variety of insurance coverage options for you to choose from to reduce your hospitalization spending.
International Health Insurance is perfect for foreigners moving into Singapore. It helps expats enjoy access to Singapore’s well-equipped facilities without worrying about unexpected medical bills. International Health Insurance includes these various common benefits:
- Hospitalization benefits - This includes surgery, ICU, medications, diagnostic tests, and other inpatient factors
- Outpatient benefits - Any treatment that does not require an overnight stay in the hospital
- Accident and illness benefits - In distressed situations, easily access medical facilities nearby, whether it be local or international
- Travel Emergency - Have the flexibility to visit a hospital or specialist when overseas.
Local Health Insurance is only applicable in Singapore and is eligible for Singaporean citizens, permanent residents, or expats with a valid pass to reside in Singapore. Singapore has its own government-issued insurance, although add-ons can be added from private health insurance, especially if you're aiming to get care in private hospitals or care in private wards in public hospitals.
Moreover, the Ministry of Manpower requires some Singapore employers to implement Employee insurance.
- Expats holding Employment Pass (EP) holders who do not have existing medical insurance, Employers can choose to provide insurance and include it in the employment contract.
- Work Permit and S pass holders require medical insurance. Conforming to employers’ responsibility to upkeep and maintain their migrant workers.
- Local and Foreign workers are applicable for Work Injury Compensation Act (WICA) whether they are under a contract of service or contract of apprenticeship while doing manual work, regardless of the salary level, and non-manual work, who is earning a salary of $2,600 or less a month.
With BLACAZ. Corporate Health can provide a health benefits package to your employees. Should you have any concerns about the premium or plans, you can contact our health insurance experts to advise you on a budget-fitting comprehensive package that meets your employee's health needs.