6/17/2014
Medishield Life – 3 holes to plug
Without knowing the fine details of the Medishield Life Scheme, pending announcements, the intention and objective of this scheme look quite positive or very positive. The frightening thing is that such a good scheme has to be enforced by compulsion. The act of compulsion is never seen as something positive. Doesn’t the Govt believe that this is a very good scheme and every mentally sane person would want to be in the scheme except for those who are unable to pay for it? But this is no longer an issue as the Govt has a string of assistance plans to make sure that no one will be left out for not being able to afford the scheme. It is thus a non issue and there is no need for compulsion as those who have weird reasons not to participate would be very small.
The Scheme could be more sustainable, likeable and attractive if 3 things are considered and be worked into the formula. One is medical cost. Medical cost must be closely monitored and not be allowed to run away. This hole is somehow not addressed by the Committee as far as I can recall. And this is a very dangerous hole that could turn into a nightmare to the computation of premiums in the future. When cost gallops away, the pressure to raise premium would be very demanding and even appears logical and necessary. Would there be a watchdog or govt body to put a lid on medical cost? I cannot believe the Committee could totally ignore this devil in the scheme when it is the primary driver of premium rates.
The second hole that needs to be plug is profit. The Medishield Life is a compulsory national scheme and profit must not be factor in the equation. And no one must use the issue of uncertainties to impute too thick a cushion to address the sudden rise in demand for medical care. Such reasonings of padding the premiums or collecting as much premiums as the insured can afford is a dangerous precedent in the thought process. It is outrageous. The premiums must be carefully computed to be just enough though no one is able to predict the margin of errors. Any excess cost by future uncertainties should be treated separately as an act of God or accident of nature. If one is allowed to build in all the future uncertainties, the unthinkables, then the premiums would never be enough.
Related to the issue of profit is the issue of excess premiums collected. Premiums that have accumulated from lower claims must be ploughed back to reduce future premiums payable. Such excesses should not be conveniently channeled to another reserved fund to be accumulated for the rainy days. This is a national scheme to provide for the needs of the insured to pay for their medical care and not a profit making scheme or a scheme to fill the national reserve. Has this been discussed and worked out?
Would the Committee address these issues and incorporate them into the Medishield Life Scheme? Have they done it, or would they do it? These are three very big holes that could allow the premiums to go up and up and looking very justifiable, no choice. High cost, high claims so premiums must go up. Excess premiums or profits have already been set aside as reserves and untouchables.
Kopi Level - Green
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9 comments:
"Medical cost must be closely monitored and not be allowed to run away. This hole is somehow not addressed by the Committee as far as I can recall."
RB
Aiyo, u expect PAP to lower medical costs? By how much? To the level of medical costs in Matland?
And just across the Causeway, Matland semi detached is about the same price (in S$) as a entry level HDB 3 rm pigeonhole!
U want lower medical cost? Go JB lah. And read this from your fellow blogger Gintai.
http://gintai.wordpress.com/2014/05/18/coping-with-exorbitant-medical-costs/
Even WP Town Council also bopian raised conservancy charges by 12% in one shot.
So if opposition become govt, costs, including medical costs, will be lowered?
If these 3 holes are not plugged, after the initial years of euphoria and sales talks, premiums will just rise as a matter of fact, with all the good reasons that cannot be dismissed.
Be afraid.
What happens to the current coverage that most citizens is covered under medishield enhanced plans under great eastern, ntuc etc.. so have to pay for BOTH medishield life & current?? Can anyone advise.
RB govt have already said medical cost has to go UP. Abt profit, once govt get big insurance companies to provide the coverage, the premiums will be PROFIT DRIVEN so yo think these companies will do national service on premiums. Medishield life is a good policy turn bad once govt push it to the private sector.
All politicians are evil. All along politicians like to use education, healthcare, jobs, housing, security to hold people as hostages to their ruling. Nothing really change much over time.
Despite the compulsion, there are still doubts on everyone's mind about the affordability of premiums in years down the road, more than what they give us from the right hand. When that happens, the PAP can give a thousand and one reasons to justify such increases.
As with all schemes devised by the PAP, the most important thing is the sell the 'koyok' to the public with the help of the MSM. Whatever tweakings down the road becomes a matter of fact, which the public will not have any say once the Government get it's hands on our neck.
Frankly, this selling of the medishield life scheme is not necessary, since compulsion is already built into the adoption of the scheme, so selling the idea is no longer the main intention, but getting the public support to justify the idea is the focus point. And that I think is still far lacking in being successful.
Singaporeans have been screwed in many ways through the CPF schemes for example, and I do not blame them for being suspicious of any scheme devised by the PAP that may be used to screw them upside down years down the road.
So long as no man in the street being appointed to the steering committee or committee governing the use of funds, nothing is transparent.
The biggest hole to plug is in the head of the esteemed Leeder.
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