Managing healthcare expenses in Singapore can be challenging, but with strategic planning, you can reduce your health insurance costs without compromising on coverage. Here are some effective strategies to help you save money on health insurance. In Singapore, healthcare costs are rising annually, with a reported 7.5% increase in private hospital charges in 2022 alone. As a result, it’s becoming even more important to plan ahead and make informed decisions about your insurance.

Learn more: How Health Insurance Works In Singapore

Use Government Subsidies and Scheme

Singapore’s government offers various subsidies to make healthcare more affordable. MediShield Life premiums, for instance, are subsidized based on income levels. Premium subsidies of up to 50% are available for eligible lower- to middle-income households. 

Additionally, the Pioneer Generation older citizens enjoy special subsidies ranging from 40% to 60%, depending on age. The Merdeka Generation seniors receive additional subsidies ranging from 5% to 10%, depending on age. 

To benefit from these subsidies, ensure your household information is updated with the relevant authorities. Regularly reviewing your eligibility can lead to significant savings on your health insurance premiums.

Opt for Group or Employer-Sponsored Insurance Plans

Many employers in Singapore provide group health insurance as part of their employee benefits package. These plans often come at a lower cost compared to individual policies due to the risk being spread across a larger group. 

While employer-sponsored plans may have certain limitations, such as restricted coverage or specific healthcare provider networks, they can serve as a cost-effective foundation for your healthcare needs.

Before purchasing an individual policy, check with your employer to understand the extent of coverage provided. Supplementing an employer-sponsored plan with additional coverage can be more economical than relying solely on personal health insurance.

Customize Your Coverage to Match Your Need

Health insurance plans come with various riders and add-ons that enhance coverage but also increase premiums. Assess your personal and family healthcare needs to determine which benefits are essential. 

For example, if you don’t plan to have children, maternity coverage may be unnecessary. Similarly, if you rarely travel, worldwide coverage might not be cost-effective.

By tailoring your policy to include only necessary coverage, you can avoid paying for superfluous benefits, thereby reducing your premiums.

Choose Higher Deductibles and Co-Payments

Opting for a plan with higher deductibles or co-payment rates can lower your monthly premiums. This approach means you’ll pay more out-of-pocket when seeking medical treatment, but it reduces the regular cost of your insurance. 

This strategy is particularly beneficial for individuals who are generally healthy and do not anticipate frequent medical visits.

However, it’s important to ensure that in the event of a medical emergency, you have sufficient savings to cover the higher out-of-pocket expenses.