Medical Savings and Medical Cost: Healthcare and Age in a Changing Singapore

Singapore devotes less than 4% of its GDP to healthcare in part because its average citizen is young. As the country has become developed, the birth rate has fallen, life‐expectancy has lengthened and the cost of care has shown signs of escalation. This has occurred despite the extensive cost‐control measures built into the mandatory system of medical savings and the opt‐in supplement of medical insurance. The threat of care inflation is that much greater because of Singapore’s attempt to position itself as a regional treatment hub, because of rising incomes and expectations, and because of a shortage of doctors and nurses which is driving wages up. Old age is contributing to the problem but, the article shows, is not the only cause.