Health and long-term care financing in Singapore

Abstract

Health and long-term care for the ageing population are becoming more critical in many Asian countries that have undergone rapid demographic and epidemiological transition. Changing age structures will have tremendous implications and it is necessary to plan for appropriate and cost-effective services. The study of new and innovative approaches to the organization and financing of health care that is integrated with long-term care would provide useful lessons for rapidly ageing societies. To avert the inter-generational problems posed by rapid population ageing, the Singapore system has developed a mix of pillars to support the basic functions of old age security - redistribution, insurance, and savings. As health care needs are projected to intensify in the rapidly ageing societies of Asia, a similar mix of financing methods could be developed to offer more protection while promoting economic growth. These considerations have formed the basis for the existing mixed system of integrating old age security and health care financing in the Singapore model, including recent plans for long-term care. Can elements of a mixed health care financing system that is based on a combination of savings, social insurance, and taxation be adapted to address the special needs of the growing number and proportion of the elderly population in Asia? © 2003, Institute of Aging Studies.