, Singapore

Should every Singaporean pay the same premium for Medisave Life insurance coverage?

By Peter Loh

There has been a lot of debate about the government’s new Medisave Life policy to replace the current Medisave medical and health insurance coverage.

Many debates have focused on the controversies with regard to coverage provided to people with existing illnesses which could translate to everyone paying a higher insurance premium to obtain adequate and supposedly affordable coverage till age 90.

As a matter of fact, every insurance provider has raised the insurance premiums for many products across the board including medical & health, and automotive insurance recently due to cost issues.

This certainly brings to head the debate on whether should every Singaporean be charged a uniform insurance premium so that people with pre-existing illnesses could obtain affordable medical coverage.

I’m not suggesting we should ostracise those with pre-existing illnesses whatever their reasons. However, we should examine how we could provide affordable medical insurance for all.

Besides the need to include those with pre-existing illnesses, there’s also the issue with abuses in claims where people may seek the help of specialist or simply go for consultation to make frivolous medical claims for minor medical issues.

Due to the fact that those insured could easily claim on medical insurance, cases have appeared that medical practitioners have raised charges which could bring about a vicious cycle of increasing and escalating medical costs.

I'm surprised that the insurers themselves didn’t suggest or recommend that for those insured who don’t make any claim or substantial claims above a certain threshold within a calendar year, they should be rewarded with rebates or lower premiums in future insurance premiums.

Automotive insurance has a NCD feature discouraging drivers from frivolous small claims which could cause future insurance premiums to rise. This feature also separates those insured with reckless driving habits and excessive claims in any period of coverage.

Henceforth, why couldn't the insurers provide a similar coverage feature in medical & health insurance whereby they could charge those with higher annual medical claims with the higher justified premiums, and reward those with the discipline to keep a healthy lifestyle and not seeking frivolous medical consultation over minor issues.

Moreover, insurers should provide a basic health screen in the annual insurance package, to encourage the insured to go for regular check-ups, seek proper medical assistance before their health deteriorates bringing about higher medical costs later.

I believe the government should seriously consider implementing a Preventive Insurance coverage rather than working on a reactive medical health insurance policy.

People need to change their mind-set to develop a discipline to work on preventive measures and not simply worry about higher medical and health care costs when their health deteriorates.

I believe the costs benefits of preventive measures would easily outweigh the higher medical and healthcare costs that we are worrying and debating so heatedly about presently.

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