Medishield Life – Promoting a new product

Today’s media is all about the highly expected new product, a medical Ferrari of sort, that the govt is adamant to sell to the whole population by compulsion. Like any new launch, we are hearing only the good news from the snippets being aired. The people have nothing to worry about. It will be very affordable, premiums will be no more than the current Medisave contributions. This looks like another ‘gum gum ho’ package vis a vis what you have in your Medisave Account. The caveat, premiums could go up at an opportune time. Heheheh. Think the formula for home/car buying, low upfront payment and pay and pay after that with interest going up at an opportune time.
 
There might be some freebies thrown out to attract the buyers and make the deals sweeter. There is a Pioneer Generation Package for those, probably 70 and above, and paid by the govt for life. This is no gimmicks, it will not be a one time payment or discount and then pay and pay like utilities bills and conservancy charges. Be very grateful for the kind mercy.
 
For those who are just below the 70 cut off point, be prepared to pay what the pioneering generation need not pay, for the rest of your life unless there is a new mercy, that premiums for the oldies will be frozen at a fixed rate or the govt will cough up more funding to subsidise the ‘very affordable’ premiums when one is 80, 90 or 100.
Assoc Professor Phua Kai Hong of the Lee Kuan Yew School of Public Policy said, ‘Can we trust insurance to contain future healthcare cost increases without stronger govt regulation on the supply side?’
 
There are a few things that the people must be worried about, the profits of insurance companies, the unstoppable escalating medical cost that would lead to higher premiums to ensure profitability to of the insurers. The fact that insurers are still in the equation is something that must be of great concern. There is no reason why the govt cannot self insure this scheme if private insurers can do so. What is the catch that the govt will not want to take on this role? A compulsory scheme has removed all the other untidy and unnecessary issues of marketing and taking care of a big sales force. It is purely an administrative job.
 
The merits of self insuring are obvious. Cut down the cost of middlemen, cut down the profit motive, and any surpluses form the previous years can be ploughed back to lower the premiums of the insured. No need super talents to know such simple stuff.
The other big unknown is the runaway medical cost if not curbed by the strong arms of the govt. The cost in govt hospitals must be regulated to prevent any smart alec from raising fees to raise their bonuses or to subsidise their pet projects. There are also issues of over consumption like all schemes that are covered by insurance.
 
To take the logic of pioneering generation and the idea of ‘yin shui si yuan’ or when we drink from the well, we will remember the source, the oldies that needed medical care are not confined only to the pioneering generation. Every generation will get old and older and the state must play a big role in their welfare. It is better to set aside money to look after the oldies that have done their parts in contributing to the nation than to give the money away freely to foreigners and foreign organizations to show off that we are rich and can afford to splash hard cash everywhere.
 
The real stuff and maybe pain will come after the initial euphoria in a new launch. What will be added on when everyone is sucked into and stuck in an inescapable scheme? It is a flawless proposition, like the 6.9m population. Everyone shall welcome it with open arms and can sleep soundly after that. There is no downside but only goodness.

Kopi level - Green