8/21/2013

Bringing Medishield Life down to earth

The madness of this Medishield Life has gone into everyone without any firm ideas being crystallised. At most the Medishield Life Scheme is just a red hot balloon floated in the air, an idea that has been thrown out in a rally but with no meat or bones in it. It has however, got many people thinking, excited, some scared to death and many people in delusion. Some even feel that their old age health problems are solved and there is no need to worry anymore. And there are those who are going to profit from it handsomely and smilingly quietly to themselves for the good fortune.

It is time to bring this hot balloon down to earth to make it real. Gan Kim Yong has said that there is nothing firm about this sketchy scheme and many hours of hard work will ensue to turn this into a reality, a practical solution to meet the expectations of all interested parties. The initial exuberance that such a scheme would cover all the medical needs of the oldies need to be toned down and the high expectations need to be doused with a pail of cold water. The cost of covering everything and every need of the oldies will make it near impossible to cover from the insurance point of view unless cost is not an issue. The premium is going to cost a bomb. It cannot be small and affordable for sure.

For practical and cost reasons, such an insurance coverage must be carefully defined. To be feasible from the insurer’s point of view and a reasonable premium to be paid, the insured must know that there is a price for everything. The people may want to demand that the Govt takes ownership of such a scheme and practise some filial piety towards the senior citizens of the country.

I hesitate to want to offer any free solutions for various reasons, ie not having a full appreciation of the complexity of such an issue, not having the resources and time to think deeply into the issue, and not wanting to insult the millionaire talents to think on their behalf, nor to offer stupid solutions as a layman. But there is no harm to make a few general suggestions that are obvious to many and not be accused of trying to be clever.

I would like to suggest that the Govt provide a first level of protection to all senior citizens either from 65 or 70 years onward comprising C class ward stay in govt hospitals and general geriatric care. Basically this scheme will pay for ward charges and basic medical care that are not prohibitive in cost. The scheme shall not cover any major and costly operations. The object of such a scheme is to provide some peace of mind to the poor oldies that they would be reasonably well taken care of in a hospital if admitted. The scheme shall not cover for expensive operations and treatments. This could be defined by the professionals. This scheme shall be provided free to the senior citizens and the scheme can be compulsory without frightening the people with unlimited premiums to pay.

A comprehensive coverage for all senior citizens cannot be extravagant and unlimited in nature.

On top of this basic coverage, the people could then be given a few enhanced medishield schemes that they are willing to pay for. These have to be voluntary and allowing the people to chose one within their means and expectation. Here the rich and those with the ability to pay can ask for the sky and demand for the best. This is like feasting in a restaurant, the economy class or high end restaurants with different price tags to suit the different aspirations and expectations. The Govt can offer the basic healthcare needs while the luxury part should be individualised and pay through the individual’s own pocket. The poor must not be made to pay for the rich and their high expectations. This is elementary.

Having two such schemes operating in parallel would not bust the Govt’s coffer or deplete the savings of the people in the Medisave. A comprehensive no limit coverage is definitely impractical and insane from the cost point of view. It will bankrupt every insured and also the insurers. To make such a scheme compulsory is unthinkable unless the Govt is footing the bill. To pass the bill to the insured is irresponsible.

17 comments:

  1. Redbean, your suggestion is very good. It is also easy to understand for ordinary Sinkies like me.

    But then hor, why didn't PM Lee think like you do too? And also announce like you do in his ND Rally?

    Why ah? This part I cannot understand. Or maybe because you and I are not PM Lee.

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  2. If I were to become PM, maybe I will also think like PM Lee.

    If I were Low Thia Khiang, I will also think WP is not ready to be govt.

    If I become rich, I will also think and behave like the rich.

    It's like that one lah.

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  3. That is why he is PM(Prime Minister) and I PM(Personnel Manager.

    If he does what I suggested, think he will gain a lot of support and approval.

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  4. By going after people's Medisave savings he is going to get brickbats.

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  5. Singaporeans are going to have to take out extra medical insurance, and to keep the thing sustainable, premiums will get to a level which would "make sense" to the insurers.

    Looking at what's been going on, IMO Singapore will eventually adopt something which looks like the Australian MediCare system.

    It will start out with one insurer: MediShield. As premiums increase overtime, more players (private) will enter the market and offer various "packages".

    Look up the Australian Medicare system. It's a mixture of private sector and government with "incentives" for taking out private healthcare insurance and expensive penalties ("disincentives") if you don't or delay getting insured. The Medicare tax is 1-1.5%, then you take out private cover which the govt "rebates" 30% of the premium.

    Depending on your age and the type of cover you require, private medical insurance varies from around $2-4k per annum, ON TOP OF the 1-1.5% Medicare Levy the govt takes from your wages everytime you get paid.

    Government "help". Get ready to pay. It doesn't more "dwon to earth" than this

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  6. Just ask yourself;
    Anything good the PAP gahmen got call you or not?

    Million dollar salary got call you or not?
    Brompton bike got call you or not?
    Pension got call you or not?
    Celebrate Singapore Day with Singapore quitters in New York City got call you or not?
    Fly to New York City in 1st class with SIA got call you or not?

    When does a PAP gahmen call you?
    National Service.
    Volunteer.
    Donations.

    Which direction is the cash flowing?
    From your pocket into the PAP gahmen's pocket or the other way around?

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  7. Universal medical coverage for all Singaporeans is financially reckless.

    Investing our Temasek billions in foreign banks is financially prudent.
    Investing $400 million dollars in the now bankrupt ABC Learning in Australia is financially prudent.
    Overspending $300 million dollars in the Youth Olympics is financially prudent.

    Lee (Really) Con You.

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  8. Means testing before admission to C class ward in public hospital is financially prudent.

    Means testing before giving a million dollar salary to a Minister is NOT financially prudent.

    Lee (Really) Con You.

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  9. This PAP insurance agent works on a "TRUST ME" approach. They don't know the payout, don't know the premium, but we must buy from them. Do we know how much profit those insurance companies are raking in from these schemes?

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  10. Hi Mr Red Bean,

    This is one of your sensible posts, with useful suggestions and good food for thought. Bravo ! Hope it is taken note of by the govt planners who are working on the details of the broad concept dished out by PM at the National Rally. But not sure about the usual negative remarks made by some of the die-hard anti-govt cynics ! They add no value to your piece other than just another round of steam-letting outbursts.

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  11. The Govt must thank me for this outlet for the angry voices to let off steam. At least after letting off some steam the temperature is lower and the mind is clearer.

    I am acting like a shrink and still waiting for payments. But likely my service is for free other than the few cups of kopi kau my friends here are buying me: )

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  12. Cardboard Collector To BeAugust 21, 2013 12:10 pm

    I am an oldie of 69. My only wish is for them to retain the status quo otherwise when medishield premiums go sky high, I will have to collect tin cans and card boards part time just to pay the "enhanced" insurance premiums. Not only that, my working children will have to pay because like the guy says, in effect, what you pay is what you will get. Only thing is, whether we want or not, we will have to pay. No opting out.

    Frankly, every time that guy gives a speech at the NDR just after national day, I always tremble because with the "bonus" payout and all those joyful singing and celebrating over, the bad news is coming from the horse's mouth. That's why I always have a bottle of my favourite Johnny Walker black label ready before sitting down, trembling and watching him deliver all the bad news. That is, spending money and ultimately, someone gotta pay, US!

    God help us all!

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  13. God cannot help Singaporeans.
    Only Opposition Parties can help Singaporeans.

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  14. Why not PM Lee practice preventive medicine?
    Control the record number of dengue fever cases.
    Then no need for Singaporeans to use Medishield to cure themselves of dengue fever.

    Isn't this a more financially prudent?

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  15. Hi Cardboard Collector to Be, welcome to the blog. Yes, it is so easy to squeeze money from the people. The Govt is getting bolder and bolder with this kind of schemes. Just make it compulsory and the people have not choice but to pay.

    At 69, your premium cannot be small. And who are the people who wants to live forever? I don't. Then why should I pay for those who have a great life to live and wanting me and you to pay for their good life?

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  16. STForum 22 August

    [Company cover should enhance Shield plans]

    Yeow Hwee Ming


    "IT IS inevitable that with MediShield Life, premiums will rise.

    But this can be mitigated to save costs for both employers and employees."


    http://www.straitstimes.com/premium/forum-letters/story/company-cover-should-enhance-shield-plans-20130822

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  17. If I can make the people pay for the Medishield Life I will want to cover everything under the sky to make everyone happy. What is the problem when the people is paying for it?

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