Why Group Medical Premiums Keep Rising in Singapore, and What HR Can Do

December is renewal season for many Singapore employers, and the conversation often starts the same way: "Why is our group medical premium up again?"

It is a fair question. Premiums have risen for several years in a row, and the reasons are not always explained clearly. This guide sets out how pricing works, what is driving the increase, what sits outside an employer's control, and the levers HR teams can realistically pull.

What it is: group medical cover and the "trend rate"

Group medical insurance is a company-paid plan that covers employees, and sometimes their families, for costs such as hospitalisation, specialist visits and outpatient care.

Insurers price this cover partly on the medical trend rate: the expected year-on-year rise in the cost of claims per person. It is a market-wide figure, a bit like inflation for medical claims.

Trend rate vs your premium

A trend rate is not your premium increase. Your renewal also reflects:

• your own claims history
• headcount changes
• plan design
• the insurer's view of risk

But when the market trend runs in the mid-teens, even a company with stable claims is unlikely to see a flat renewal.

Why it matters: the numbers behind the renewal letter

The WTW Global Medical Trends Survey put Singapore's trend at 12.3% in 2024 and 15.5% in 2025, with 16.9% projected for 2026.

That is above the survey's projections of 14.0% for Asia Pacific and 10.3% globally for 2026.

What drives medical costs up

Costlier care, and more of it

Treatment, medicines and diagnostic technology keep improving, and newer options usually cost more. People also use care more readily than before.

WTW points to an ageing population, a rise in disease incidence, improved early detection and the long-term management of conditions such as cancer, diabetes and obesity as factors behind Singapore's rising medical cost trend.

Chronic conditions arriving earlier

Long-term conditions such as high blood pressure, diabetes and high cholesterol drive a large share of claims over time.

Singapore's National Population Health Survey 2024 found that 51.2% of residents with high blood pressure, 41.3% of those with high cholesterol and 16.5% of those with diabetes had not been diagnosed before the survey's health examination.

Undiagnosed risk does not show up in claims today, but it tends to surface later, when care is more complex.

Late detection

A condition found early is usually simpler, and cheaper, to manage than one found after complications. That is a clinical truth as much as a financial one. When screening findings are not followed up, the cost is often deferred rather than avoided.

What sits outside HR's control

It helps to be honest with leadership about what no benefits team can change:

• national healthcare cost inflation
• an ageing workforce
• new treatments entering the market
• insurer pricing cycles

Framing the renewal this way keeps the discussion grounded, and moves it towards the things you can influence.

How it works in Singapore: useful public schemes and rules

Subsidised screening for staff

Eligible Singapore Citizens can access subsidised Healthier SG Screening for cardiovascular risk, cervical cancer and colorectal cancer at CHAS GP clinics for S$5 or less. It is worth communicating to staff alongside any company screening.

The tax position

IRAS allows employers to deduct employee medical expenses up to 1% of total employee remuneration, or 2% where qualifying portable medical benefits apply. Confirm your position with a tax adviser.

Practical levers HR can use

1. Understand your own claims picture

Ask your broker or insurer for de-identified, aggregated claims data: which categories are growing (outpatient, specialist, hospitalisation), and how utilisation compares with the previous year.

You do not need individual data, and you should not have it. Patterns are enough to guide decisions.

2. Review plan design before cutting cover

Co-payments, panel arrangements and outpatient limits all affect cost. Changes can help, but cutting cover sharply can push people to delay care, which may raise costs later. Make plan changes deliberately and explain them clearly to staff.

3. Turn screening into follow-up

Many companies already pay for annual health screening. The value comes from what happens next: does everyone with an out-of-range result speak to a doctor, and does anyone start a plan? A screen with no follow-up finds risks and then leaves them alone.

4. Think beyond the annual check-up

Habits around sleep, activity, nutrition and stress shape long-term health more than a single check-up. Practical workplace support, such as making time for medical appointments and reminding staff to book follow-ups, can help people act on what they learn.

5. Measure what matters

Rather than judging a wellbeing programme only on this year's premium, track participation, follow-up rates and aggregated health trends over two to three years. Prevention works on a longer timeline than a renewal cycle, and leadership should know that up front.

Quick renewal checklist

1. Request aggregated claims data by category, not just a total.
2. Separate the market trend from your own experience in the renewal.
3. Model any plan design change for its effect on staff behaviour, not only cost.
4. Map your screening programme to a clear follow-up pathway.
5. Agree how individual health data stays private.
6. Set two- to three-year measures for any prevention programme.

This guide is published by the team behind Care+, a personal longevity programme in Singapore.