We thank Mr Lim Teck Koon for his letter, “Be prudent about including state-of-the-art therapies in MediShield Life coverage” (March 19).

The Cell, Tissue and Gene Therapy Product (CTGTP) space is rapidly evolving, and CTGTPs may become mainstream clinical treatments in the future.

However, CTGTPs are likely to be very expensive. As a society, we want to ensure that Singaporeans have a chance to access these potentially effective treatments. Insurance can play a useful role, as it works by sharing the financial burden of high-cost, low-incidence treatments through risk-pooling.  

Safeguards must be in place to ensure that including more of such treatments under MediShield Life is sustainable.

For instance, financing coverage may be extended only to treatments that are assessed to be clinically- and cost-effective. There should also be limits set for claims.  

The main cause of premium increases is the growth in claims as our population ages. We need to increase existing claim limits to protect Singaporeans against large hospital bills.

The Ministry of Health will study how to help policyholders cope with MediShield Life premium increases and ensure that these remain fully payable by MediSave.

Navanetharaja Gopala Krishnan
Director (Finance Policy)
Healthcare Finance Group
Ministry of Health