Experts said policy makers are finding it a challenge to look for ways to fund and support the increased spending.
They reckon that perhaps the private sector could play a larger role to help contain the runaway costs.
About 15 per cent of Singaporeans will be above 65 years old by 2020, according to the Health Ministry.
This means healthcare spending, particularly ageing-related medical costs, will only move higher.
Failure to control these costs can have adverse effects, such as spiralling budget deficits.
Tan Kim Eng, senior director, Sovereign & International Public Finance Ratings, Standard & Poor's, said: "The existing arrangements in Singapore is such that the government's share of the healthcare financing burden is relatively low. (But) As the population of Singapore grows older there could be increasing pressure on the government to take on more responsibilities for healthcare spending."
According to healthcare professionals, tapping the private sector - be it spare beds in private hospitals or risk pooling through insurance companies - can help make healthcare more affordable.
They said what's needed are reforms - such as preventing insurers from cherry picking, or only covering the healthiest people with the lowest risk of using health services.
Carol Tan, specialist in Geriatric Medicine & consultant, Raffles Internal Medicine Centre, said: "Increasingly we'll have to depend on insurance. But one of the issues with insurance is that they need to be portable. There are many people who do have work-related insurance but the moment they change jobs or they get old they don't have that healthcare coverage."
Other experts said creative insurance policies that reward policyholders for taking care of their health are also welcome.
Rhenu Bhuller, vice president, Healthcare, Asia Pacific, Frost & Sullivan, said: "Instead of developing diseases later on like chronic diseases that will take more long term costs, you do an annual health check and your premiums go down if your blood glucose levels or your blood pressure levels go down. So you get rewarded for taking care of your health."
The government's many helping hands approach seeks to get individuals, as well as families and community groups, involved in shouldering the welfare burden.
Perhaps it's time the private sector lent a helping hand.
- CNA/cc
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