The rising cost of buying health insurance in Singapore outpaced the island state’s inflation rate by a country mile during 2018, insurance broking and risk management business Mercer Marsh found.
In its 2019 Medical Trends Around the World report, the firm revealed that medical cost inflation rose by 10% last year, while official estimates put the core inflation rate, which excludes changes in the price of cars and accommodation, at 1.7% and headline inflation at 0.4% for the same period.
Off the charts
Mercer Marsh also forecast that the rampant healthcare inflation did not look like easing anytime soon.
In fact, the firm estimated that in 2019 the medical trend rate – which measures medical cost inflation – would go up to 10.1% in Singapore while core inflation was expected to ease to 1.4%.
Across Asia the average rise in health insurance costs is seen dropping to 10.3% in 2019 from 10.4% last year, according to the report.
Singapore was deemed the sixth highest nation for medical cost inflation in Asia out of the 11 countries surveyed for 2019 – the same ranking it had in 2018.
The top country for healthcare cost inflation in 2019 is expected to be Vietnam at 14.2%, followed by the Philippines at 13.7%, Malaysia at 13.6%, Indonesia at 10.5%, and China with 10.2% then Singapore with its 10.1%
Overall, the Asian average for the medical trend rate seems to be higher than the global average. Asia’s average of 10.3% compares with a global average of 9.6%, even as official forecasts for inflation rate in the wider economy hover around 2.6% for Asia and 3.3% globally.
