Singapore health system euthanises voodoo economics

To protect against the risk of catastrophic illness which could wipe out their medical savings, Medisave account holders under 80 years of age may use their funds to buy Medishield insurance. This covers hospital expenses and selected higher-cost outpatient treatments. Other primary care costs (eg consultations and tests) are typically covered by top-up private insurance, which is very competitive. 

The third pillar of Singapore’s innovative system is Medifund, which provides means-tested health care for the poor (roughly 10% of the population). The Government established the fund in 1993 and makes additional contributions during years of overall budget surplus. Medifund ensures that no Singaporean is denied good basic care because of inability to pay. 

The difference is that Singapore’s health care system gives maximum responsibility and choice to patients, who are mostly spending their own money rather than that of other people. However, it also makes sure nobody faces catastrophic medical bills, and that the poor have enough money to buy medical care.

Voodoo economics have no place in public policy. With sensible policies, personal choice and individual responsibility can co-exist, without the Nanny State barging in and telling us all how to live.