Face the highest prices and medical costs in Asia, the Singapore government subsidizes citizens through insurance, but it is just a drop in the bucket.

The official media of Singapore, "Lianhe Zaobao," reported on its front page that the Singapore government has increased the insurance compensation ratio to alleviate the burden on citizens.

Experts analyze that the main shortcomings of the insurance system for Singaporean citizens are as follows:

1. Inadequate medical coverage

The Singapore government does not provide medical subsidies to foreign residents, leading to high medical cost risks for nearly 2 million foreign residents. Local citizens have basic health insurance (MediShield Life), but the coverage is limited and needs to be supplemented by long-term commercial health insurance (IPs) to cover hospitalization costs in A/B1 wards of public hospitals and private hospitals.

2. Continuous pressure from rising premiums

Since 2016, the premiums for IPs have significantly increased. For example, the premium for the age group of 46-50 years old at AIG Insurance increased from 570 SGD to 775 SGD, an increase of 36%; the premium for the age group of 56-60 years old increased from 1,043 SGD to 1,355 SGD, an increase of 30%. Insurance companies adjust premiums and claims strategies to deal with high claim rates.

3. Challenges in adjusting the protection system

After the reform of the IPs products, the claim rate continued to rise (reaching 146 million SGD in 2017), forcing insurance companies to simultaneously raise premiums and control claims. The government cooperates with private insurance companies through the Central Provident Fund, but high losses still make product adjustments difficult.

4. High medical costs

The number of C/B2 wards in Singapore public hospitals is limited and the waiting time is long. The average hospitalization cost for choosing B1 wards or private hospitals can reach 14,000 to 50,000 SGD. Nearly 70% of the population relies on long-term commercial health insurance to enhance their level of coverage, reflecting that the basic medical system cannot meet the needs of the entire population.

Original: www.toutiao.com/article/1841654359840780/

Statement: This article represents the views of the author himself.