Changes to health insurance costs in 2025

What you need to know about Singapore health insurance costs and changes

As the city-state continues to refine its employment and healthcare landscape, both employers and insurers are adapting to new realities. The State of Health Insurance 2025 Report by Pacific Prime highlights key trends shaping the market – insights that are particularly relevant for expats navigating benefits and coverage for Singapore health insurance.

Policy and workforce shifts

Singapore’s workforce policies are evolving quickly, and employers are feeling the impact. From CPF contribution adjustments to stricter Employment Pass criteria, these changes are reshaping how benefits are planned and delivered. For expats, this means that the structure of employer-provided packages may look different than before, with more emphasis on compliance and cost management.

Recent government reforms are reshaping benefit planning. Adjustments to Central Provident Fund (CPF) contributions, the expansion of the Progressive Wage Model (PWM), and stricter Employment Pass criteria are increasing payroll and benefit costs. Employers are especially impacted when supporting older or lower-wage workers, making benefit design more complex.

Rising healthcare costs

Healthcare in Singapore is world-class, but it comes at a rising price. Medical inflation continues to push premiums upward, and insurers are grappling with higher claims utilisation in the post-pandemic era. Expats should be aware that coverage for chronic conditions and mental health support is becoming more expensive, reflecting broader global cost pressures.

Medical inflation remains a pressing issue in Singapore. Health insurance costs are climbing due to:

• Advanced treatments driving up costs of cutting-edge care.
• High hospitalisation rates increasing inpatient expenses.
• Post-pandemic claims surges, particularly for chronic disease management and mental health services.
• Global economic pressures, including inflation and supply chain disruptions.

For expats, this translates into higher premiums and a stronger emphasis on preventive care and wellness programs.

Singapore insurance market adjustments

Employers and insurers are not standing still in the face of rising healthcare costs. Instead, they are experimenting with new benefit structures and cost-containment strategies to keep healthcare affordable without sacrificing quality. They may notice more flexibility in their plans, as personalisation becomes a key theme in benefit design.

To balance affordability with quality, insurers and employers are adopting new strategies:

• Flexible benefits plans that allow employees to tailor coverage.
• Wellness programs focused on preventive healthcare and stress management.
• Self-insurance models among larger corporations for greater cost control.
• Tiered provider networks to manage expenses while maintaining care standards.

Mental health coverage expansion

Mental health is gaining parity with physical health in benefit design. Employers and insurers are investing in therapy, psychiatric services, and Employee Assistance Programs (EAPs). As Heena Bose, CEO of Pacific Prime CXA, notes: “Many mental health partners are adopting a proactive approach to mental wellness, offering daily and regular reminders to de-stress, engage in breathing techniques, and providing self-help articles on stress relief.”

This shift reflects a broader move toward proactive, digital-first support for employee wellbeing.

Preventive healthcare and digital transformation

Screenings, vaccination programs, wearable health tracking, and telemedicine are becoming standard features of corporate wellness. These innovations not only reduce long-term costs but also align with employee expectations for accessible, tech-enabled care.

Looking ahead

The Singapore health insurance market will continue to evolve under the twin pressures of rising costs and regulatory change. To avoid unexpected bills, you must adapt your coverage to keep pace with the trends.

Pacific Prime is committed to helping businesses and individuals navigate these changes, ensuring that health coverage is both comprehensive and sustainable. Reach out to them today to optimise your plans!

You can also download your free copy of the Pacific Prime State of Health Insurance Report 2025 to learn about global industry trends.

Get comparisons from different Singapore health insurance providers in one go

If you’d like to compare health insurance providers or need help securing individual health insurance or family health insurance, get in touch with a Pacific Prime insurance expert for impartial advice and a free plan comparison.

Written in collaboration with:
Pacific Prime CXA Singapore
18 Cross Street, China Square Central, #14-05
6346 3781 | pacificprime.sg

Read on for more about insurance and other health and fitness topics in Singapore.