CPF account owners have the privilege to participate in two optional
medical insurance schemes, Medishield Basic and Enhanced. Presumably
because these are a national health care initiative by the govt, the
terms and benefits must be better than what the market can provide, or
at least not worse off. I am not going to spend time delving into how
much better or how much worse off they are and feel comfortable that
they must be reasonable to the policyholders.
From data available in the media, it was reported that between 2001 and
2010, MediShield premiums collected were over $2 billion and the paid
out was less than $1.3 billion, giving a net gain of $850 million.(I thought it should be $700m which is still a big sum) This
is a pretty healthy return for a business. If the Medishield schemes are
meant to be a profit making enterprise, the shareholders must be very
pleased with the result and profit.
My question is whether the schemes are meant to be such, or be a self
funding public service? If it is for profit making, who should benefit
from the surplus? And I can understand why there is a new scheme like
Medishield Life in the making. This new comprehensive all encompassing
scheme could be even more profitable by the sheer numbers of
policyholders as a compulsory scheme. Those with existing health
conditions are unlikely to get away without paying an extra hefty
loading on the premiums. A profit making business must take into the
risk taken. And the oldies, in their 70s, 80s and 90s and above, I am
salivating at the sum they are likely to pay in premiums. There is no
free lunch, and higher risk means higher premium. The insurers must be
beaming at the pot of gold at the end of the rainbow surely.
What if the Medishield schemes are not meant to be profit making? If
that is the case, should not the profits, like the $850m, be ploughed
back to the policyholders to lower the premiums? A non profit making
scheme should not be distributing the profits away right? I don’t think
any policyholder of the Medishield schemes has seen his premium lowered
or subsidized due to the surplus of $850m yet. Where has this $850m gone
to? Should not any surplus be returned to the policyholders in some
ways? This will prevent anyone from thinking of raising premiums all the
time to generate more profits for dunno who.
And if the Medishield Life is going to be made compulsory, it has more
reasons to be a self funding scheme to benefit the policyholders and
making profits should not be a consideration at all. Of course it should
also not be loss making as well.
So, where are we now? Are the current Medishield schemes meant to
generate profit or to pay the medical expenses of the policyholders? The
main mission of such medical insurance schemes must be clear and up
front, and must benefit the policyholders. It is a ‘compulsory’national
insurance scheme with no one allows to opt out. Thus it must not be
profit making in nature. If not, woe beholds the policyholders as they
will end up at the mercy of the scheme, feeding the bottom line and
having to pay out generous bonuses to dunno who.
Anyone knows what is going on?
37 comments:
The whole insurance industry here in this little pisai is a sure win sure make money con, not only the medishield whatever.
Take car insurance for example. When they lose money, they will come after you for higher premiums. Claim for any accidents whether it's your fault or no, and you will surely find yourself being made to pay higher premiums the next time, as well as lose your No Claim Bonus. These bastards obviously don't understand what insurance is all about.
It is high time that the G take a deep hard look into the industry. If it is not put right, the G will be blamed for being complacent and letting the citizenry be fleeced. It is alright to make a decent profit on any business venture but when it is a near scam and these buggers are laughing all the way to the bank at our expense, something must be done real quick before the rot turns into malignant cancer.
Greed knows no bounds.
For transparency purposes;
To make sure Singaporeans are getting the best deal possible;
Let's call for a global tender for our National Healthcare Insurance.
I'm tired of the dog & pony shows.
I'm tired of being told I'm being subsidized.
I'm tired of hearing about our self-sacrificing Millionaire Ministers.
I'm tired of being accused of raiding our reserves.
(How can I raid my own money if the reserves belong to all Singaporeans?)
Is insurance scheme a business?
If so, what kind of business is not for profit making?
And why should a compulsory insurance scheme not make money?
Especially when they have the mandate to make money?
@ ANON: August 27, 2013 9:21 am
We don't care if insurance scheme is a business.
We don't care if it is for profit making.
We want transparency on the cost.
We want real meritocracy via a global tender to give us the best value for our money.
We want a global tender.
"And why should a compulsory insurance scheme not make money?"
Make money for who?
Make money for the insurance companies?
Why then is PAP putting money into the pockets of insurance companies?
Why isn't PAP putting money into the pockets of Singaporeans?
"Especially when they have the mandate to make money?"
Who is "they"?
Is "they" the PAP gahment?
Does the PAP gahment have the mandate to make money for the insurance companies?
All insurance are out to make money.
Do away with these insurance. Allow Sinkies to go back to the days of Tontine.
All the Ah Lau can join in.
No gimmicks...Tontine will be better.Uncle Bean can help to start and head one,he will not run away.
Very good question.
It is like SMRT. They have to make "reasonable" profit. We are being fleeced.
I have heard some daft argument that profits will be used for future paid outs. They can wait long long. Premiums will go up to maintain "reasonable" profit.
@ ANON: August 27, 2013 9:54 am
"It is like SMRT. They have to make "reasonable" profit. We are being fleeced."
Exactly.
Shouldn't we have called for a global tender?
Instead of just giving $2 billion dollars to SMRT and SBS Transit?
How do we know SMRT and SBS Transit represented the best value/solution to Singaporean taxpayers?
Are there not other transport companies that are even better operated than SBS Transit and SMRT?
Maybe they can deliver better value in exchange for $2 billion dollars of Singaporeans' money?
Political Joke
--------------
Q: How does a 3rd world leader ensure the loyalty of his general?
A: Make him the CEO of a train company .... ??
The people are suckered by the high medical cost and scams and now going to be made to pay a premium they cannot refused.
A shortage of arse kickers overbalanced by an abundance of arse kissers - the real elephant in the room.
Such a big discovery by redbean you should ask our dear WP MPs to verify the figures and if true, to bring out in Parliament.
Are you sure the figures are correct, or only agar agar you guess?
Insurance Scam Victim said...
The whole insurance industry here in this little pisai is a sure win sure make money con, not only the medishield whatever.
I share the sentiment expressed by the above writer. I know of cases involving car insurance and medical insurance. When the insured made a successful claim against his insurance policies, the policies were immediately terminated. The poor insured could not get another insurance coverage.
It is good news that the Government will inplement an insurance scheme to cover all persons including the presently uninsurables.What is the motive for this unusual largess from the Govt? This Govt is not known to be generous! A pang of conscience or a guile to win back lost votes?
What do you think?
@above. It is good news that the Government will inplement an insurance scheme to cover all persons including the presently uninsurables.What is the motive for this unusual largess from the Govt? This Govt is not known to be generous! A pang of conscience or a guile to win back lost votes?
Proof that propaganda is working well.
What largess from the Govt? It is all premium from our sweat and blood CPF. The govt does not spend a single cent more.
A compulsory scheme like this must not be profit making. Any surplus must be ploughed back to the policy holders to reduce their premiums. This a form of safeguard. If not, people will be thinking of making more surpluses at the expense of the policyholders or making them pay more.
But before you think this is enough, think carefully about the vicious cycle of higher premiums and higher medical fees and up and up it goes, just the same.
Singapore should have a “Single Payer” Healthcare. The videos below explain comprehensive Healthcare around the world - "Single Payer" Healthcare, no insurance and not-for-profit.
The first video, full length about an hour long. The second video sama sama, condense versions. The last video how Obama Con the American's people with Obamacare. If you are unable to access the website, goggle’s searches "Sick Around the World, FRONTLINE.”
If you like it, use "Steamtransport" http://www.streamtransport.com/. This freeware will download PBS videos.
Enjoy
1- http://video.pbs.org/video/1050712790/
2- http://www.pbs.org/wgbh/pages/frontline/sickaroundtheworld/view/
3- http://www.pbs.org/wgbh/pages/frontline/obamasdeal/view/
This is how it work: the rich gets richer the poor gets babies...or well'll we import them. Get it?
Hahaha......
'Should'nt we have called for a global tender?'.
Who is the 'we' and how is the we to actualize the global tenders for the public transports and healthcare??
Sinkies are complacent, 'bochap'(apathetic), selfish like their Rulers. So who to blame?
'Any surplus must be ploughed back to the policy holders to reduce their premiums'.
Who to see that the Surplus 'MUST BE PLOUGHED BACK'?
And if it is not done, what can the policy holders do?
In a recent survey, Singaporeans indicated that they want a slower pace of life........
With this ruling party, we are always at the losers end and they are always the winners else how do they get to buy their sea front and south france properties? But the people are too easily manipulated, mislead, misrepresented to stop voting for them. If the people want more say, they have to vote in more alternative parties whether they are ready or not. It is as simple as that but the people are stubborn so they will have to pay the price of stubborness.
MUST HERE,
MUST THERE,
MUST EVERYWHERE.
Where are You folks
and are You making
effort to see the MUST
bears fruition. Have You
rally your family, clans, friends,
colleagues and others?
The people should sing ' SHOW ME THE MONEY'. No one ever wonder where are all the monies such as coe, erp, stamp duties, levies collected ended up?
Countries with no such stuff are able to provide the people with almost free healthcare, education, decent quality of living but how come the so called talents here cannot?
PAP= Plundering action party.
Some of the initiatives are good but the premium should tie to income (not age) just like many first world countries. Foreigners and their dependants should pay much higher premiums.
While you guys are happily engaging on this issue, don't forget my kopi can? Very thirsty today : )
Are you one of the poor too? Hope you've done your duty as baby factory worker :-)
We were the Stop at Two generation : )
@ ANON: August 27, 2013 2:59 pm
/// 'Should'nt we have called for a global tender?'.
Who is the 'we' and how is the we to actualize the global tenders for the public transports and healthcare?? ///
The "we" is the PAP government.
Since they have failed to call for a global tender.
It's time we elect other people who will.
Medishield should be called MediFree.
Premiums to be paid for by the Singapore Reserves.
What's wrong with spending our own money for ourselves?
Isn't it better than "investing" and losing money on foreign bank shares?
Must!
Must!
Must!
Should! Should! Should!
Then what???
Then what???
Then an old grandfather dies.
Patriots celebrate.
PAP loses two more GRCs.
PAP share of popular votes drop below 40%, despite capturing 75% of seats in parliament.
Another day, another supposed suicide at another SinCity HIGH RISE housing estate block. Was passing by an area this evening when there was a huge cordoned off area at the foot of a HDB block. Several police cars were spotted including one huge VAN type with powerful flashing light. In the middle of the cordoned off area lies those usual "blue tinkie over you know what". Suddenly one can feel the awful emotion and a sick and sad overwhelming very heavy feeling. For the next few hours, I tried very hard to steady myself and my thoughts though I have no clue who that "victim" was. Likely such incidences may not be reported in the news in the coming days. Almost surely, some "f---up" social and economic circumstances likely must have led to such sad and avoidable daily happenings played out all over the island. If there is such thing as karma, some people who are constantly "gulping down huge mouthful of delicacies" and probably spendthrift and decadence lifestyle through their obscene salaries paid for by taxpayer monies may have to "pay dearly" one day when fate and "karma" eventually catch up with them ............. Seems like some people's legacy may already be numbered by the divine and it is a matter of time before the most ugly truths unfold in their faces. When the time is up, the end may be swift .......
For one in particular, may he lasts longer to witness the rots, decays and collapse of the so-called First World Islet with supposedly Swiss Standard Of Living said to be built by him.
>>1232
God has long given up hopes on humans. Human beings has the power to change their fate by voting properly not blindly. Do not need to depend on karma.
Anon 1.41am .........
GOD WILL NEVER GIVE UP ON HUMANS..... GOD HAVE A PLAN FOR EVERYONE........CHEERS....GOD BLESS......
On the surface, the proposed medishield changes appears to benefit Singaporeans but in effect it is the govt that would gain more - more money would be collected from Singaporeans, with the co-payment, the actual benefit to
people would not be very significant which in any case would be met with the additional funds collected from a scheme which is now made compulsory for everyone. The largest chunk would come from younger and
generally much healthier Singaporeans who are most likely to be the ones who would NOT be making much medishield claims. So in actual fact the medishield changes is to make the healthier segment (younger Singaporeans) pay for and support part of the medical cost of older less healthy Singaporeans. Little, perhaps even nothing, would come from govt
coffers. Not to forget, the rates has still to be announced but obviously the two insurers would be handed, by virtue of this govt policy, a huge annual windfall on a solid gold platter.
IMO, IN ORDER NOT TO MAKE THE COMPULSORY MEDISHIELD
SCHEME AN UNDESERVED WINDFALL FOR THE INSURERS AND GOVT, AND TO LESSEN THE EXTRA BURDEN WHICH WOULD BE IMPOSED ON ALL SINGAPOREANS UNDER THE COMPULSORY MEDISHIELD LIFE
SCHEME,TWO THINGS CAN BE DONE:
1.) AT THE END OF EACH ACCOUNTING/INSURANCE YEAR, AN EXPERIENCE REFUND, SHOULD BE RETURNED TO ALL
PARTICIPANTS. THIS IS THE PRACTICE IN GROUP TERM INSURANCE, SUCH AS THE SAF GROUP TERM INSURANCE. THE EXPERIENCE REFUND IS UNUSED COLLECTED FUNDS AFTER DEDUCTING FOR SERVICE COST AND CLAIM PAYOUTS.
2.) OR, A PRE-DETERMINED SUM (ADJUSTED FOR INFLATION, ETC)
CAN BE BUILT UP VIA THE COMPULSORY SCHEME, AND ONCE THIS IS REACHED, FURTHER CONTRIBUTIONS FROM PREMIUM PAYMENTS SHOULD BE LIMITED/REDUCED TO THAT WHICH IS NECESSARY TO MAINTAIN THE PRE-DETERMINED SUM AT AN OPTIMUM LEVEL (NOTE, NOT MAXIMUM LEVEL). SO IN A 'GOOD YEAR' WHEN CLAIMS WERE LOW, PARTICIPANTS (I.E. ALL SINGAPOREANS) SHOULD BE PAYING A LOWER OR EVEN NO PREMIUM PAYMENT, IF CLAIMS HAD BEEN REALLY LOW, IN THE FOLLOWING YEAR. THESE TERMS WOULD ENSURE THAT THE INSURER/GOVT DO NOT BENEFIT AT THE EXPENSE OF PARTICIPANTS (ALL SINGAPOREANS).
FOR THIS TO WORK THAT WOULD HAVE TO BE PUBLICIZED
COMPLETE ANNUAL REPORTS AND TRANSPARENCY BY THE
INSURERS/GOVT.
I seriously believe it is only fair that either of these should be included as part of the proposed Medishield Life that PM Lee mentioned (without elaboration) during the NDR. There is absolutely no reason for
Singaporeans to pay more than is necessary for medical coverage and for the insurers to reap a huge windfall at our expense for no other reason than a fiat of govt. As to the choice between the two, this can be decided by Singaporeans themselves or both can be offered and left to Singaporeans to choose.
No worries. One very very frail and old old man who still may have more god years to come already expounded his 90 years gospel of wisdom and golden hard truths. He has already given up on the most crucial issue in this little red dot. When he does that, does it mean other issues which become too hot too solve down the road suffers the same fate? Next "candidate" for such fate is "healthcare and medishield problem" when they become unsolvable down the road? World class super talent? Highest multimillion salaries? But give up when cannot solve problem? Is there something seriously flawed?
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