FIGURE OF 16.9% AN INACCURATE DEPICTION OF HEALTHCARE COST INFLATION

The headline of the article “Medical cost inflation in Singapore set to hit record 16.9%; insurers’ body urges collective action” (March 30) does not provide an accurate picture of healthcare cost inflation in Singapore. 

The Healthcare Consumer Price Index for 2025 is about 3 per cent. It covers many aspects of healthcare, including hospital bills, primary care and medication costs. 

The 16.9 per cent figure reflects the growth in private healthcare insurance claims, not healthcare inflation. This figure is compiled using insurers’ and brokers’ own internal data and “medical cost trends”. 

A key reason for rapidly rising private healthcare insurance claims is overly generous insurance coverage, leading to a “buffet syndrome”. This has, in turn, led to escalating private insurance premiums which many Singaporeans find unaffordable. 

That is why the Ministry of Health has to take action to require changes to the design of Integrated Shield Plan riders. Singaporeans should review their insurance needs with their financial advisers. 

Lydia Loh
Group Director, Healthcare Finance Group
Ministry of Health