Demand for subsidised healthcare will exceed supply so IPs still have a role

We agree with the points in Mr Lee Tai Huat’s letter “Why people buy IPs? It’s a long wait to see specialist otherwise” (Aug 8).

Most healthcare services are subsidised by the Government to ensure affordable access for Singaporeans. When a service is subsidised, demand will inevitably exceed supply, and there will be a queue. In the case of healthcare, urgent cases are given priority, while there will be a wait time for non-urgent cases.

Integrated Shield Plans (IPs) enable those who can afford to seek non-subsidised care to choose their doctor, and shorten waiting time.

However, IPs, especially when combined with riders, become a problem when the claim benefits are too generous, resulting in a buffet syndrome. These will lead to over-servicing, excessive treatment and over-consumption, which means inflated medical bills or hospital stays even for minor issues, because someone else is paying for it. Ultimately, this pushes up healthcare inflation and premiums unnecessarily.

We will need to address these issues, while recognising the role of IPs. It is also important to help individuals be more familiar with how insurance works and what meets their needs.

Sarah Leong

Director, Finance Partnerships and Governance

Ministry of Health