SINGAPORE — To further assure Singaporeans that healthcare will remain affordable and accessible, the Government will raise its share of national spending from the current one-third to about 40 per cent and “possibly even further”, depending on factors such as demographics, and the Government’s ability to manage healthcare costs and target its subsidies.

Making this pledge yesterday during the Ministry of Health’s (MOH) Committee of Supply debate, Health Minister Gan Kim Yong also provided more details about the review of the healthcare financing framework, which was first announced during the Budget statement last month.

“How we spend the additional money is crucial. Today, the bulk of our subsidies go towards hospitals, where the cost per episode is high. As our population ages, delivery of healthcare will increasingly extend beyond hospitals,” he said.

As Singapore’s population ages, healthcare financing experts have called on the Government to increase its share of national spending and to adjust its “3M” system of Medisave, MediShield and Medifund, which covers only about an estimated 15 per cent of total healthcare expenditure.

Yesterday, several Members of Parliament also echoed the call as they urged the authorities to widen the usage of Medisave to help Singaporeans with their out-of-pocket medical expenses.

According to the Health Minister, the Government spends about 4 per cent of the Republic’s gross domestic product on healthcare, or about US$1,700 (S$2,120) per person,

While this is similar to what Hong Kong spends, the proportion is lower than the Organisation for Economic Co-operation and Development (OECD) average of 9.5 per cent, he added. “But we must bear in mind that several OECD countries have older populations than we do, and our expenditure on healthcare is likely to grow as our population ages.”

Acknowledging that the Republic’s healthcare financing framework needs to be reviewed extensively, Mr Gan said the process would take more than a year.

Elaborating on the review, he said the Government would explore more targeted financial support for patients for long-term and primary care. Preventive healthcare as well as specialist outpatient care would also be looked at, he said.

Among the other areas to be addressed: Whether the Medisave cap on chronic diseases needs to be raised further from the current S$400, and whether the coverage under the Chronic Disease Management Programme should be expanded to include more diseases. “Should we allow Medisave to be used for outpatient treatments beyond the (programme)? How do we prioritise the different needs, to ensure that Medisave will not be depleted?” Mr Gan said.

Warning against “unrestricted use” of Medisave, Mr Gan stressed the need for key principles to remain so as not to “create a problem for future generations”. “If we get it wrong, we leave a heavy burden of debt for our children and grandchildren.”

“The starting point is for every Singaporean to take ownership of his health, to live healthily, seek treatment early and make informed choices in seeking treatment. For this reason, it is important to preserve the principle of co-payment, but we will also have to ensure that it remains affordable,” he said.