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Why are there changes to cancer treatment financing?

Before 1 September 2022, MediShield Life paid up to $3,000/month for all cancer drugs, and Integrated Shield Plans (IPs) often covered costs above that on an as-charged basis (i.e. no claim limit), with a small co-payment.

Such a design meant that drug companies had no incentive to charge lower prices for drug treatments that cost less. As a result, we paid higher prices for many cancer drugs as compared to other countries such as Australia, South Korea and the United Kingdom.

The changes to cancer treatment financing allow us to negotiate lower prices for cancer drugs and ensure that cancer treatment costs and insurance premiums remain affordable for Singapore residents in the long term.