With the high cost of healthcare in Singapore, it’s key for expats to secure comprehensive health insurance while living here. But, health insurance costs can be expensive, too. In fact, Pacific Prime’s latest Cost of Health Insurance Report found that Singapore is the third most expensive place in the world to get insured. Here, the Pacific Prime Singapore team tells us more about their findings and why health insurance premiums in Singapore are so expensive.
How much does health insurance cost in Singapore?
On average, an individual and family in Singapore will need to fork out US$6,265 and US$17,803 for premiums, respectively, according to Pacific Prime’s latest Cost of Health Insurance Report 2021-22 (COHI). The report analyses and ranks different countries based on the average cost of international private medical insurance (IPMI), and family health insurance.
While the US and Hong Kong maintain their positions for having the highest IPMI premiums, Singapore has crawled up the ranks to third spot. In the last year, Singapore saw an 18 percent increase in individual health insurance premiums and 22 percent in family health insurance premiums.
Here’s why health insurance premiums are so expensive
So, what specifically can this increase in health insurance costs be attributed to? Here’s a look at the five key factors responsible for the surge in Singapore.
#1 High utilisation of medical services post COVID-19
While hospitals filled up with COVID-19 patients, most people in Singapore avoided seeking medical help until necessary. Or, they opted to turn to expensive private hospitals. And, with the country opening up again, many people are resuming elective medical treatments, leading to a surge in IPMI premiums.
#2 People are living longer
The life expectancy rate in Singapore for males and females is 81.1 years and 85.9 years, respectively.And, it’s expected that, by 2030, one in four people in Singapore will be older than 65 years.
As life expectancy increases, so does the number of people needing medial care. In turn, insurers have to adjust their health insurance premiums to accommodate the rise in medical needs.
#3 Digitalisation and telemedicine
Telemedine, or virtual health consultations, gained a lot of traction during the pandemic. And insurance providers expect to see an increase in demand for online medical services moving forward. However, enabling telemedical consultations, lab test collection, medication delivery and online claims filing services can be expensive for medical institutions. These changing medical trends, in turn, can impact the IPMI premiums.
#4 Medical advancements
Advancements in medical technology mean that previously untreatable conditions can be treated, and older treatment methods can be replaced with new ones. However, new advancements come at a cost. This, of course, increases the costs of IPMI.
#5 Increased awareness of healthcare benefits
Having IPMI allows people to focus on getting better rather than stressing about the accumulating medical bills. In an event like a pandemic, an IPMI plan enables access to private healthcare with immediate medical attention and world-class care. Because of this, more Singaporeans are now securing private medical insurance. This has led to a surge in the cost of health insurance premiums.
Learn more about securing health insurance in Singapore
If you’d like to compare health insurance 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.
To check out more health insurance trends globally, download Pacific Prime’s Cost of Health Insurance 2021-2022 report for free.
Written in collaboration with:
Pacific Prime 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.
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