Individuals Can Play Key Role in Reining in Healthcare Costs: Experts

Avoiding overtreatment, choosing suitable IPs and staying healthy can make a difference

- Chor Khieng Yuit

Much has been said about the role of insurers, doctors and hospitals in managing healthcare costs, but individuals have a crucial part to play as well.

Mr Eddy Cheong, chief executive of insurance advisory firm Havend, observed that with the generous coverage of Integrated Shield Plans (IPs), a rise in bigger claims can sway the claims rates, even though most claims could be smaller in proportion.

Rising healthcare costs are not going away, especially as Singapore is set to reach super-aged status by 2026, which is when 21 per cent or more of the population is aged 65 and above.

Medical costs tend to go up as people age, as chronic conditions such as high blood pressure and heart disease are more likely to develop.

Health insurance premiums also go up with age.

Insurers typically charge premiums according to age bands, so as one gets older and moves into higher age bands, annual premiums go up as well.

The Central Provident Fund Board's healthcare financing website shows that premiums for IPs, especially those for private hospitals, "rise substantially with age".

The median annual premium for private IPs across insurers is $2,930 for a person aged 61 to 65, while those aged 66 to 70 pay $3,850—a jump of 31 per cent.

The premiums go up further as one reaches the next age band, eventually hitting $9,080 a year for those who are aged 84 and 85.

Mr Louis Koay, a senior financial services director at Phillip Securities, said everyone has a role to play in managing healthcare costs.