Budget for health subsidies up 10% to $2.2bln

The Finance Ministry also topped up Medisave accounts, Medifund and Eldercare Fund by $710mln.

"Such government subsidy for healthcare is the first layer of protection for Singaporeans, which ensures universal access to basic healthcare by all," said Minister Khaw Boon Wan.

The Ministry of Health is also undertaking steps to improve the current system.

The MOH Minister said, "We will subvent the community hospitals which partner the acute hospitals to provide sub-acute care, more. The daily norm cost for such cases will increase from $271 to $400 per day. So this is quite substantial. Second, we will (a) raise the daily Medisave withdrawal limit for community hospitals from $150 to $250, and (b) raise the annual Medisave withdrawal limit from $3,500 to $5,000."

These adjustments should make it cheaper for sub-acute patients to move from an acute hospital to a community hospital, added the ministry.

The importance of insurance meanwhile was stressed when Mr Khaw Boon Wan said, "After government subsidies and Medisave, health insurance in the form of MediShield, ElderShield and their private supplements, form the third layer of protection. The value of health insurance and the benefits of risk-pooling are well established. Practically all countries have incorporated insurance into their healthcare systems."