Breaking health insurance vicious circle a top MOH priority, says Ong Ye Kung

Move to ensure private schemes give ample coverage but discourage over-consumption

- Salma Khalik

Singapore needs to break the health insurance vicious circle or the escalating healthcare costs it creates will make paying for healthcare very painful, said Health Minister Ong Ye Kung.

With rising claims enabled by generous insurance policies leading in turn to rising premiums, the Ministry of Health needs to rein in the current very unhealthy buffet syndrome.

One step it has started to take is action against the minority of doctors making the most egregious and inappropriate insurance claims.

This will be done through the Claims Management Office, set up in 2022 to ensure that claims are appropriately made, said the minister in a hard-hitting speech at the Securities Investors Association (Singapore)’s – Sias – 25th anniversary members’ night.

Making a wry quip that he would talk about investing in health rather than securities, Mr Ong outlined the steps that needed to be taken to keep healthcare spending, currently under 5 per cent of gross domestic product, from rising too rapidly.

Mr Ong said the “audience of learned investors” would know health spending is not an investment.

Rather, health spending is highest when people become ill and need diagnostic tests and treatments to repair their bodies, he noted.

Naming insurance as a key driver of rising costs, he said insurance companies need to take a hard and realistic look at their product design, and rein in generous and unsustainable benefits such as no limits on claims and very low co-payments.

Overly generous benefits lead to a “buffet syndrome” of healthcare consumption, he said.