Coverage of New Subsidy Framework for Standard Drugs List and Drug Affordability

Mr Yip Hon Weng asked the Minister for Health with the new subsidy framework for the Standard Drugs List (a) how many more Singaporeans will be covered under the revised subsidies; (b) how much does the Ministry expect to spend in total for the revised subsidies; and (c) how will the Ministry ensure that medical drugs remain affordable to all Singaporeans.

Under the new subsidy framework for the Standard Drug List (SDL) in the acute hospital and community hospital settings, all Singaporean patients with Per Capita Household Income (PCHI) up to $2,000 will receive higher SDL subsidies of 75%, compared to 50% previously. Singaporeans with PCHI above $2,000 will continue to enjoy SDL subsidies of 50%. This will be effective from 1 November 2022.

The Government’s expenditure for SDL subsidies arising from this change is expected to increase by around 7% to over $120 million per annum.

To ensure that medical drugs remain affordable for Singaporeans, MOH also recently enhanced Medication Assistance Fund (MAF) subsidies, such that eligible residents with PCHI of $2,800 to $6,500 seeking care at our PHIs will receive subsidies of up to 50% for selected high-cost drugs.

MOH also takes active steps to manage drug procurement and related supply chain costs. This includes aggregating drug demand and centralising drug procurement across the public healthcare sector through the Agency for Logistics Procurement and Supply (ALPS), to achieve greater economies of scale and negotiating leverage. At the same time, the Agency for Care Effectiveness (ACE) also conducts health technology assessment and negotiates drug prices with pharmaceutical companies to achieve prices that commensurate with the benefits.