Tuesday, June 10, 2008

Medishield Reforming again

On 11th April, our Health Minister, Khaw Boon Wan announced to unionist during a dialogue session about a proposed Medishield reform. The cover will be enhanced but with an increased of premium. The last reform was in July 2005 where Medishield was improved and all private plans are being integrated with Medishield.

What are the plus points of this proposed reform?
1) Normal wards daily limits
* Increase from $250/day to $450/day
2) ICU wards daily limits
* Increase from $500/day to $900/day
3) Surgical procedures
* Increase from Max $720 to $800 per hospitalisation
4) Implants and Medical Consumables
* Increase from $2,500 to $8,000
5) Chemotheraphy
* 7 days max from $150 to $270
* 28 days max from $700 to $1,280
6) Radiotheraphy
* Per Treatment from Max $1,000 to $1,800

What are the Minus points of this reform?
1) Premium increase
* less than $120/yr for below 80 yo
* less than $60/yr for below 60 yo
* less than $36/yr for below 50 yo
2) Deductible for above 80 yrs old are increased
* Class B2 wards - Increased from $1,500 to $3,000
* Class C wards - Increased from $1,000 to $2,000

Okay. Now what are my views...
1) A reform should do more good to Singaporeans than anything else.
Most Singaporeans should be able to afford a modest increase in premium. Its a government scheme, unless you terminate it, then you got no say. But if they don't enforce it, most of them don't care to cover themselves anyway.

2) I am particularly unhappy with the increase of deductible for the elderly. Why?
* They are the people who will most likely go to the hospital
* They are the people who are most likely have no money in CPF
* Government raise the deductible to $3,000 for B2 wards and $2,000 to C wards. Not forgetting there are co-insurance of upto 20%
* Its as good as telling them to pay for their own hospital bill because the chance of a bill above such deductible is low for C and B2 wards.
* I'm disappointed that the government is being so calculative towards our senior citizens

3) The 2005 reform should have make CPF Board richer.
* Did they tell us their surplus? Are surpluses distributed back into the system to reduce premium or increase cover? I strongly believe there are fat surpluses. Why?
* The 2005 reform had integrate all private plans back into Medishield. This means the pool of policyholders are suddenly increased where all Singaporeans are back into the pool. All the healthy ones are back into the Medishield system and Cherry picking problem of the past was solved by this forced integration.
* The integration had pushed the administrative work to the hospital and insurance companies when all claims are done through them. CPF board just collect premium and do minimum administrative work compared to the past when they have to manage their claims with hospital and policyholders directly.

Well. I have a lot to share about Medical Insurances and my personal experiences with claims. Will share more in future postings.

No comments: