In my earlier blogpost on healthcare funding, I highlighted that our government spending on healthcare is the lowest among the advanced economies in East Asia and Scandinavia, including Hong Kong, South Korea, Taiwan, Japan, Denmark, Norway and Sweden.
The chart below shows that Singapore government spending on healthcare is only 36% of total healthcare spending. Take note that our Medisave monies spent on health are not counted as out-of-pocket spending.
In the 2013 Budget Speech, the 2013 National Day Rally Speech and the 2014 Budget Speech, the government has repeatedly indicated that it will look into reducing individual out-of-pocket expenditure on health and increase state spending on health. Deputy Prime Minister Tharman Shanmugaratnam said in last Friday’s Budget Speech that “Government healthcare spending for the population as a whole will grow, quite apart from the extra benefits we are providing the Pioneer Generation.”
However, the Budget Speech gives no indication on how much government healthcare spending may increase as a percentage of the total healthcare bill, vis-à-vis private health expenditure including individual out-of-pocket expenses, Medisave payment and insurance. Continue reading…