Singapore’s healthcare system, often lauded for its efficiency, faces a pivotal moment. With escalating costs, an aging population, and polarised policy debates, the GE2025 election has thrust healthcare into the spotlight. In a candid panel discussion hosted by TFC GE 2025 Special , experts dissected the crisis—and potential solutions. Here’s what you need to know.
Alex Lee, a former insurance regulator and current Chief Actuary, painted a stark picture: “Medical costs are rising faster than salaries or premiums can keep up.” He highlighted that hospital admission rates climb 4% annually pre-65 and 6% post-65, with average stays doubling for retirees. “If you’re paying $400,000 in premiums over a lifetime, the cumulative cost could hit $1.7 million with 4% annual inflation,” Alex warned.
The root issue? Misaligned incentives . Insurers profit modestly (2% margins), while hospitals and pharmaceutical companies command 8–10% margins. “Providers bill freely when patients aren’t scrutinising costs,” Alex noted. Meanwhile, agents pocket 12% of premiums, incentivizing upselling.
The panel dissected proposals from Singapore’s political parties:
PAP’s Pragmatic Tweaks :
Focuses on expanding infrastructure (13,000 new beds by 2029) and preventive care via HealthSG. However, critics argue it lacks bold reforms. “Building hospitals is necessary but doesn’t address profit-driven care,” said sociologist Ern Ser.
SDP’s Radical Overhaul :
Advocates for a single-payer system to eliminate profiteering. “Healthcare is a human right,” argued Lee, endorsing SDP’s plan to centralise drug purchases and standardise treatments. But caveats exist: Taiwan’s similar model faces bankruptcy risks due to overconsumption and low premiums.
Workers’ Party & PSP’s Middle Ground :
Expands MediSave usage for dental/mental health but risks faster depletion. “Flexibility without funding clarity is a dead end,” Lee cautioned.
Prof Tan Ern Ser, a sociologist, linked healthcare strain to demographic shifts: “An aging population with fewer young taxpayers is a ticking time bomb.” SDP’s solution—subsidising elderly care via youth premiums—relies on a robust fertility rate, which Singapore lacks (0.97 in 2023).
Alex offered a provocative angle: Rethinking longevity . “Why force everyone to live longer? Some prefer a ‘firework life’—short, vibrant, and dignified.” He criticised societal pressure to prolong life at all costs, urging conversations about euthanasia and quality of life.
All panelists praised HealthSG’s preventive focus but stressed execution gaps. “GPs are underpaid for chronic care management,” said Prof Tan Ern Ser. Adrian Tan, CMO & Author of 'No more bosses,' added: “Preventive care is buried in bureaucracy. Why isn’t the app reminding me about flu shots?”
Alex emphasised shifting from “sickness care” to true healthcare: “Prevention costs pennies compared to ICU bills. But insurers and providers profit from the latter.”
The debate boiled down to ideology. PAP’s “3M framework” (MediSave, MediShield, Medifund) prioritises individual responsibility, while SDP leans on communal support. “Self-reliance has limits,” argued Prof Tan Ern Ser, citing food insecurity among 10–15% of seniors. “Post-pandemic, solidarity must balance rugged individualism.”
Reggie summed it up: “Healthcare isn’t just policy—it’s a reflection of who we are as a society.”
Conclusion: A Fork in the Road
Singapore’s healthcare future hinges on tough choices: curb profits, boost fertility, or recalibrate societal values. As GE2025 approaches, voters must ask: Do we want incremental fixes or a systemic reset? The panel’s consensus? “Sustainability isn’t optional,” Alex said. “The math doesn’t lie.”
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