Singapore's healthcare financing: Some challenges

Based on the principle of individual responsibility and affordability Singapore has developed a unique healthcare model that has produced outstanding health outcomes per dollar spent. Data analysis shows that healthcare financing in Singapore is nevertheless highly dependent on individual income levels despite the presence of substantial government subsidies. Moreover, the key medical care instruments, Medisave, MediShield and government subsidies, are heavily biased towards inpatient treatment and there is little cover for expensive outpatient treatments. With the dual objective of improving equity in healthcare financing and providing a more comprehensive cover we propose fine‐tuning the MediShiled insurance scheme by making it compulsory with an income‐dependent premium structure implemented through a MediShiled tax.