Healthcare costs in Singapore have been on the rise in recent years. Here we speak to the team at APRIL International about the reasons for increasing health insurance premiums, and their tips for fighting against medical inflation. You can reduce your medical costs!
High healthcare costs for expats in Singapore
Healthcare for Singaporeans and permanent residents is subsidised by the state (to the tune of 4% of GDP). This is affordable given individuals contribute to government schemes such as Medisave, Medishield and Medifund. Expats on the other hand do not qualify for these programmes, and have to pay for health costs out of their own pocket. This can become a very expensive exercise. And costs can quickly spiral upwards especially if you need consultations, diagnostic tests or surgical intervention. Getting comprehensive, competitive international health insurance is key.
Factors contributing to increasing health insurance premiums
Medical inflation is the first culprit. The WTW Global Medical Trends Survey found that medical care costs in Asia Pacific increased to a high of 9.9% in 2023. And this medical inflation is predicted to increase to 10.67% in 2024. Insurers must increase their premiums to absorb increasing healthcare costs.
According to the team at APRIL International, there are two other factors driving up insurance premiums on the Little Red Dot. The second contributor is that people have been heading back to the doctor post pandemic. They’re still catching up with recurring medical visits that were postponed over that two-year period. Now that daily mask wearing is over, there’s been a surge in respiratory illnesses that require frequent GP visits. Plus, many people are planning treatments that they put on hold during COVID, such as surgeries and elective procedures.
The third factor driving up insurance premiums is age. The older people get, the higher their risk profile, so insurance premiums need to be upwardly adjusted to take this into account.
What can insurers do to help keep insurance premiums down?
Proactive health insurance companies have taken steps to battle rising medical inflation. They are passing on savings on to customers through lower insurance premium increases. APRIL International offers the following solutions to make access to healthcare easier and help reduce abuses at the same time.
#1 Avoid abuses through direct billing with trusted medical providers
Healthcare remains a business with potential abuse and strategies to increase revenues. Medical providers, especially highly sought after specialists, have a great degree of freedom to set their own prices. In addition, detailed regulation practices are limited. This leaves the door open for some to recommend non-medically necessary treatment, or to overcharge and overprescribe.
“We have established direct billing partnerships across Asia with thousands of medical professionals. This collaboration ensures that our members receive the right treatments at fair, negotiated and sustainable prices,” says Romain Di Meglio, CEO of APRIL International Asia. “Overall, we encourage our clients to ask questions and request data on the experience of the specialists. As with everything else, perfection comes with practice. People should also carefully consider the consequences of any medical procedure. Both the doctors and the APRIL teams are always happy to answer.”
#2 Vetting treatment plans for hospitalisation
When medical situations escalate and hospitalisation is required, costs can get out of hand quickly. “Our in-house team of trained doctors and nurses diligently review each treatment plan. This ensures the medical necessity and appropriateness of the treatment, that it is performed by a suitable medical professional, and that the cost is reasonable and customary,” says Romain. He explains that the team works hard to negotiate rates on high-cost treatments, aiming to provide the best possible healthcare outcomes for members while keeping costs in check and containing medical inflation.
#3 Introducing telehealth services
Introducing telehealth services is a good way to reduce the cost of in-person consultations for minor health issues. “Our members can get in touch with a doctor quickly, 24/7. Our data has shown that over 80% of consultations are resolved over the phone and patients don’t need an in-person follow-up,” says Romain. “It works brilliantly to both get the right information and reduce the frequency of visits which is at an all-time high.”
#4 Second medical opinion service
According to Romain, access to a second opinion helps members get an external, unbiased opinion and empowers people to make better informed decisions about their health. This means sometimes finding alternative, less invasive treatments or avoiding unnecessary treatments.
Want to find out more about how APRIL International can help you and your family find the right health insurance at affordable insurance premium? Reach out for a consultation.
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