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Driven by an ageing population, labour shortage and advanced treatments, healthcare costs in Singapore continue its 3rd year of double-digit growth. So, can health insurance truly help bring your out-of-pocket costs down?
Singapore’s healthcare costs continue to be elevated, and this worrisome trend looks set to continue. According to WTW’s Global Medical Trends 2025 report, medical costs in Singapore are projected to increase by 12%, similar to 2024, and slightly lower than 2023’s rate of 13.7%.
This comes amidst a backdrop of increasing healthcare costs in the APAC region, projected to average 12.3% in 2025.
Several factors drive the rise in healthcare costs in Singapore, which we’ll examine in detail later. More importantly, with medical costs expected to remain elevated, affordable health insurance should play a critical role in keeping healthcare affordable. More than ever, Singaporeans should ensure adequate health insurance coverage to meet their medical needs.
Why are medical bills getting more expensive in Singapore?
Reason 1: Singapore’s population is rapidly ageing
Due to our low birth rate, Singapore is a fast-ageing society. Our population is projected to attain “super aged” status in 2026, with more than 1 in 5 expected to be over the age of 65. Unfortunately, at the rate we’re going, the pace of ageing is expected to quicken; by 2030, as many as 1 in 4 Singaporeans are expected to be over 65 years old.
One consequence of having a greater number of aged citizens is the increase in demand for healthcare services due to the onset of disease and age-related health concerns. As more people seek medical services, the cost of healthcare inevitably increases — a supply and demand problem.
Reason 2: Better screening, leading to earlier treatment
With continuing advances in medicine, better screening methods are now available for diseases such as cancer. One recent innovation is the Multi Cancer Early Detection (MCED) test, which can screen for common cancers with a single sample of blood. Compared to conventional procedures such as mammograms, occult faecal blood sample testing, or colonoscopies, this is a more convenient, less invasive screening method.
Thanks to medical advances, these improved screening methods allow doctors to detect diseases, particularly cancer, at an early stage. Thus resulting in early treatment and better outcomes. However, better screening and earlier treatment tend to drive up healthcare costs.
Reason 3: Newer, more effective treatments
Additionally, newer, more effective therapies – as well as improvements to existing ones – also contribute to higher healthcare costs.
For instance, over the past 10 years or so, the cost of knee implants has risen by around S$1,500 to S$2,000.
More recently, newer therapies have emerged in response to antibiotic-resistant bacteria infections. In March 2025, SGH announced the successful treatment of a female patient using bacteriophage therapy – the first of its kind in Southeast Asia – incorporating microbes found in our very own Singapore River.
These newer and more effective treatments cost more, contributing to larger hospital bills overall.
Reason 4: Increased manpower cost
Labour makes up approximately 60% of the total cost of healthcare in Singapore, which is already at a high level. However, with a shortage of manpower and worldwide inflation, wages are set to rise even further.
Of course, the goal of hospitals in Singapore (both private and public) is to attract and retain a viable healthcare workforce capable of providing high standards of healthcare. However, the increased expenses will ultimately be passed on to patients in the form of larger medical bills.
How health insurance can make a difference
With so many factors contributing to increasing healthcare costs, what can the average Singaporean do about it? One viable solution is to make use of your health insurance to reduce hospital bills and obtain the coverage you need.
MediSave for subsidised hospital bills
Think of your MediSave account as your first line of protection against high healthcare costs. If you need to undergo treatment at a hospital, you can use your MediSave to offset a portion of your bills. Additionally, MediSave can also help cover the costs for conditions requiring chronic care (e.g. diabetes, hypertension), outpatient visits, and approved medications.
Your MediSave can also be used to pay for the premiums of your MediShield Life, CareShield Life, and Integrated Shield Plan.
However, there are MediSave withdrawal limits to observe. Once these limits are exceeded, you’ll need to top up the remaining sum in cash.
In addition to the automatic contributions made through your CPF, you can also make voluntary top-ups to your MediSave account — or the accounts of your parents, siblings, or spouse. Not only does this help ensure there are sufficient funds for future medical needs, but it may also qualify you for tax relief, depending on the amount contributed and the recipient.
MediShield Life and Integrated Shield Plan for additional coverage
MediShield Life offers basic healthcare coverage to all Singapore citizens. It lowers healthcare expenses by subsidising the cost of hospital bills, especially for B2 and C wards. Subsidy amounts are lower for B1/A wards and even lower still for private hospital stays.
This is where an Integrated Shield Plan (IP) comes in handy. Your IP can provide additional coverage to cover a large portion of your hospital bill. This means you only need to pay a fraction of your treatment costs in cash or by using your MediSave.
More than additional hospitalisation coverage, your IP plan can also provide higher claims limits for treatments and medication. It can also cover items excluded under MediShield Life, such as ambulance fees and maternity charges and complications.
Riders for extra financial protection
Another useful benefit of an IP is the variety of riders that can be attached to one. Riders are optional add-ons that increase your healthcare coverage in specific ways and are best used to address additional concerns.
For instance, if you’re worried about a family history of cancer, you may purchase a cancer insurance rider – this provides you with additional coverage in the event of a cancer diagnosis.
Besides cancer, riders are also available for critical illnesses, personal accidental death or injury, early payout of benefits, and more. Check with a qualified financial advisor to find out the most suitable riders for your needs.
| Pro-tip: Remember to tap on your Corporate Insurance Plan for additional coverage! |
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Full-time employees are commonly offered corporate healthcare coverage as part of employee benefits. You will be covered under the plan as long as you remain employed by the company.
Corporate Insurance can provide coverage for hospitalisation, dental treatments, and GP clinic visits, but this would depend on the plan offered by your company.
The bottom line? Don’t ignore your corporate insurance benefits; they can and should be included as part of your overall healthcare coverage.
Spotlight – The importance of one-stop preventive care
Earlier, we mentioned that better screening allows patients to seek treatment earlier. This is important as it can dramatically improve the odds of survival or even be a complete cure for diseases such as cancer.
Having a clear, well-kept medical history is highly useful in preventive care. That’s why it’s advisable to see the same primary care physician regularly — they can better understand your health over time and refer you to the right specialists when needed for more complex conditions. In fact, both the Singapore Government and Ministry of Health encourage Singaporeans to stick with one regular family doctor, rather than visiting different clinics each time, to ensure more coordinated and effective care.
Having a one-stop solution for your healthcare needs can make things a lot simpler — especially when it’s close to home. That’s where Parkway MediCentre comes in.
Parkway MediCentre brings together a range of services in one place, from family physician care and urgent medical attention to chronic disease management, health screenings, and consultations with specialists like paediatricians, physiotherapists, and dermatologists.
It’s a centre designed to support your health at every stage — whether you’re caring for a child, managing your own well-being, or looking out for an elderly parent.
Conclusion – The growing importance of health insurance
Singapore continues to experience elevated healthcare costs, with year-on-year growth in the double digits. This trend is going on its third year running, driven by multiple factors ranging from increasing labour costs, newer treatments and improvements in existing ones, better screening leading to earlier treatment, and Singapore’s rapidly ageing population,
While MediShield Life offers basic health insurance, a private healthcare plan can do more to mitigate the effects of rising healthcare costs. Reach out to a qualified financial advisor to learn more about what an Integrated Shield Plan can do for you and your family.
If you’re unsure about what your current coverage is like, use our Coverage Checker to find out more!
