Explain measures/policies introduced by the government to keep

healthcare affordable.

Medisave was introduced in 1984 to encourage Singaporeans to be
responsible for their own health. A certain amount of money (6-8%) from
an individuals CPF is channeled into his Medisave account. This money
can be used to pay hospital bills and certain medical treatments when
needed. Thus, Medisave helps to manage the rising costs of healthcare in
Singapre because singaporeans are better able to pay for medical
treatments which are expensive. This has also benefited singaporeans as
major treatments such as chemotherapy have also been included. As a
result, Medisave assists governments burden of paying for healthcare
services and encourages singaporeans to be responsible for their own
health.

Medishield is a national healthcare insurance scheme introduced to help
singaporeans who require long-term treatment of more serious illnesses.
Patients are able to make claims from MediShield to pay for large medical
bills which Medisave does not cover such as long-term dialysis and long-
term severe disabilities. Thus, MediShield helps to manage the rising costs
of healthcare in Singapore because singaporeans are better able to pay for
their medical expenses and also meets the specific medical needs of some
singaporeans. As a result, Medishield encourages singaporeans to be
responsible for their own health and assisting the Singapore Governments
burden of paying for healthcare services.


Medifund is a fund of $200 million started in 1993 by the government to
provide help to those who are not able to pay for healthcare. The interest
earned from this fund is given to public hospitals to provide help for needy
patients. Medifund ensures needy Singaporeans who despite, Medisave,
Medishield and government subsidies still cannot afford to pay their
medical expenses. As a result, this ensures that no Singaporeans will be
denied of any medical service. It makes healthcare affordable to the needy
since the fund pays for the medical costs.

Government subsidies are direct subsidies given by the government to
hospitals, polyclinics and nursing homes to help keep healthcare cost
affordable for all Singaporeans. Providing subsidies means the government
gives a certain amount of money based on factors such as the types as
wards in the hospital. For example, Class C wards in hospitals are heavily
subsidised. As a result, Singaporeans in the lower-income group are still
able to afford hospital treatment because they do not have to pay as much
as people in other wards.

Restructuring hospitals ensures that hospitals can keep healthcare cost
low as the hospitals have the freedom to reorganise themselves in the way
they run the hospitals to meet the needs of Singaporeans. With greater
efficiency due to restructuring, Singaporeans would have better healthcare
services such as faster treatment and appropriate spcialist care if required.
As a result, less resources and time are wasted which would make
healthcare more affordable for the country on the whole.