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
