Health Minister Ong Ye Kung discusses strategies for maintaining healthcare quality and accessibility in the face of an ageing population.
Healthier SG: A Strategy for a Healthier Future
Singapore is betting on the Healthier SG plan as a key initiative to ensure that healthcare remains affordable, high-quality, and accessible, despite challenges posed by an ageing population. This plan is designed to encourage residents to lead healthier lifestyles and reduce long-term healthcare costs by focusing on preventive care.
During the 15th Singapore Economic Policy Forum, Health Minister Ong Ye Kung highlighted that the Healthier SG program, which is funded at $400 million annually, may not be sufficient to achieve an ambitious goal of narrowing the gap between lifespan and health span, a concept Ong recently introduced after Singapore’s recognition as a Blue Zone. Blue Zones are global regions known for their high life expectancy and health standards.
Additional Measures to Enhance Health Outcomes
To further promote a healthy lifestyle, Ong proposed exploring additional measures, including differentiating insurance premiums based on lifestyle choices and regulatory actions to curb the consumption of unhealthy ingredients like sodium. He also emphasized the importance of the Age Well SG initiative, aimed at helping seniors stay socially active and avoid loneliness, a growing concern in Singapore’s ageing society. The program encourages seniors to build social connections and engage in community activities to reduce the need for institutional care.
Economic Considerations in Healthcare
Minister Ong also called for greater attention to health economics, encouraging more economists to focus on balancing healthcare supply and demand, solving issues between payers, providers, and patients, and using behavioral economics to nudge people towards healthier habits. To address these challenges, the Ministry of Health is considering the establishment of a health economics office.
He further discussed the rising costs associated with medical technology and new drugs. While these innovations offer potential benefits, they also come with significant financial costs. The question, as Ong noted, is how to balance funding for these treatments without compromising on other public needs like education, transport, and defense.
International Healthcare Funding Models
In comparing international healthcare systems, Ong discussed the single-payer model used in Britain and the insurance-based system in the United States. While both systems have their advantages, they also have inherent downsides. For example, Britain’s public healthcare system, though equitable, is under significant strain, particularly after the COVID-19 pandemic, with long waiting times for treatments and rising costs. On the other hand, the U.S. system, which relies heavily on private insurance, offers more consumer choice but can create inequalities in access to care.
In Singapore, Ong noted, the government has chosen a mixed model that combines subsidies, insurance, and personal responsibility through mandatory savings, as seen in the S+2M framework (subsidies, MediSave, and MediShield Life). This approach seeks to balance the need for public spending on healthcare with individual accountability, ensuring the long-term sustainability of the system.
As Singapore continues to adapt its healthcare system, the focus remains on building a future-ready workforce while ensuring that healthcare remains equitable and sustainable for all citizens.
