Make co-payment compulsory
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MEDISHIELD is a low-cost medical insurance scheme introduced in 1990 to help Central Provident Fund members meet medical expenses from major illnesses.
Over time, several insurance companies introduced their own versions of MediShield coverage, better known as 'Shield' cover, meant for those who wish to stay in more exclusive wards and hospitals.
These private insurance plans operate on a co-payment feature by means of deductibles or co-insurance.
Subsequently, insurers introduced riders with premiums payable by cash to cover the deductible and co-insurance portions, which absolve policyholders from having to pay a cent if they are hospitalised.
Transferring a 100 per cent risk back to the insurer is not a good idea as it may increase the potential risk of exploitation by hospitals and patients.
Hospitals may order treatments and diagnostic tests that may not be cost-effective and yet generate consumer demand for these intense and costly services.
Over time, the medical inflation rate will likely rise faster than the national inflation and Singaporeans' wage increase rates.
The Health Ministry and Monetary Authority of Singapore should reconsider allowing insurers to add riders within their private MediShield-like insurance plans that offer complete coverage.
A patient who is partially responsible for his hospital expenses will be more likely to think twice about agreeing to costly procedures and treatments suggested by his doctor or hospital.
The patient is also likelier to compare health-care institutions and doctors' billings before making a decision on the most cost-effective option.
The practice will help control health-care costs better and create healthy competition among hospitals in the long term.
Spiralling health-care costs will impose an unnecessary burden on public funds, and health insurance premiums may skyrocket to a point where only wealthier patients can afford them.
I applaud NTUC Income, which is the only insurer here that recognises the problem and insists on a 10 per cent co-payment plan for its Shield coverage.
Adrian Khiat
-- ST Forum
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ok.
