Healthcare financing sources

13 May 2013

Question No. 515

Name of Person: Mr Gerald Giam Yean Song

Question

To ask the Minister for Health what is the healthcare spending in each of the last 10 years for the funding sources of (i) Government subsidies (ii) Medisave (iii) MediShield (iv) ElderShield (v) Medifund (vi) private and employer insurance (vii) other employer benefits (viii) out-of-pocket cash and (ix) other funding.

Answer

1   National health expenditure (NHE) covers not just basic healthcare services such as inpatient and outpatient hospital care, visits to primary care doctors and long-term nursing care; but also includes consumption of health products (e.g. pharmaceutical drugs, over-the-counter health supplements, Chinese herbs, consumables such as dressings and appliances such as mobility aids); as well as other healthcare services (e.g. traditional and complementary medicine and therapy).  It also includes spending by not just residents, but also foreigners. 

2   Table 1 shows Singapore’s NHE in each of the last 10 years, and the main components – (i) Government Health Expenditure (GHE) which includes Medifund assistance, (ii) Medisave withdrawals and (iii) MediShield claims. 

Table 1: National Health Expenditure, with breakdown for government share and 3Ms (Medisave, MediShield, Medifund)

Year

NHE

($m)

GHE

($m)

GHE: Medifund assistance only ($m)

Medisave withdrawals

($m)

MediShield claims

($m)

2002

5,916

1,558

26

361

77

2003

6,479

2,070

34

328

77

2004

6,911

1,778

32

367

84

2005

7,437

1,843

39

398

88

2006

8,000

2,010

40

445

113

2007

9,055

2,283

50

517

137

2008

10,100

2,814

59

558

161

2009

11,538

3,734

64

601

215

2010

12,365

3,846

79

678

249

2011

13,141

4,079

91

722

282

Note: GHE follows the Government fiscal year, while Medisave and MediShield are reported on a calendar year basis. Medifund is a component of GHE.

3   From 2002 to 2011, national healthcare spending increased by an average of 9% per annum, while government healthcare spending grew faster by more than 11% per annum.  

4    In 2011, ElderShield payouts amounted to $10 million and this is expected to increase over time as the population ages. In addition, Integrated Shield Plans paid out about $0.2 billion. The remainder includes other third-party payers such as private medical insurance, employers’ benefits for employees, civil service medical benefits, charitable donations, as well as out-of-pocket payments including spending by foreign medical tourists.

 

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