Singapore sees an above-average healthcare benefit cost increase
Employers in Singapore have been advised to emphasise the importance of preventive care to employees amid the projected above-average rise in health benefit costs in the country.
WTW's 2026 Global Medical Trends report revealed that medical costs in Singapore are expected to increase by 16.9%, higher than this year's 15.5%.
Singapore's estimated healthcare benefit cost increase is also expected to be higher than the Asia-Pacific's projected average hike of 14.05%, and the global increase of 10.3%.
Fong Han Wei, Head of Health and Benefits at WTW, said employers in Singapore should adapt to rising medical costs by investing in education and prevention.
"Empowering employees to use healthcare benefits wisely to access services, emphasising the importance of preventive care to improve overall health outcomes is one of the actions that can be taken," the official said in a statement.
Companies can also consider including an element of flexibility into employee benefits programmes so employees can utilise the benefits they need, according to Eva Liu, Head of Strategic Development, Asia Pacific, Health & Benefits at WTW.
"To control cost, employers should also consider introducing co-payment or co-insurance design to drive more thoughtful medical spending and discourage excessive claiming," Liu added.
Drivers of rising benefit costs
The growing medical cost trend is driven by a variety of factors, such as high medical costs, regional pressures on pharmacy, outpatient services, and global structural factors, according to WTW.
New medical technologies were also cited by the majority of insurers as a primary driver of medical inflation, followed by advancements in pharmaceuticals.
In terms of diseases, cancer has emerged as the fastest-growing and most expensive diagnosis in APAC, with more than 80% of insurers observing a rise in cancer incidence among individuals under the age of 40.
In Singapore, the growing medical cost trend is attributed to the country's ageing population, rise in disease incidence, improved early detection, and long-term management of some diseases.
New technologies, treatments, and pharmaceuticals also contribute to the growing costs, as well as high operating expenses due to increasing real estate prices and salaries to healthcare staff.
"Despite variations in healthcare provision in different countries in APAC, rising medical costs are a consistent trend for all," Liu said.
"Understanding the trends and drivers are crucial for employers and insurers to develop effective strategies to manage cost and improve healthcare outcomes for employees."
