Alternative news in 1 day? (part 71) – Increase MediShield Life premiums?

I refer to the article “Review panel recommends significant enhancements for MediShield Life” (Channel NewsAsia, Mar 2).

Increase in MediShield Life premiums shared by the people and the Govt? 

It states that “To address the issue of the additional costs arising from the expected higher claims from those with pre-existing conditions, the committee’s preliminary view is that the cost of universal coverage should be shared across those with pre-existing conditions, the existing insured policyholders and the government.

Bobby Chin, head of the MediShield Life Review Committee, said: “There are people who said that ‘why should they be paying for the uninsured or people with pre-existing conditions?’.

“But on the other hand, there… (are also) Singaporeans who have shown compassion and care for their fellow Singaporeans.

“How much additional premium should we place on the (uninsured) individual coming into group?… A range has been suggested, perhaps 20 to 30 percent of additional premiums, but we have not been able to come to a decision at this stage.”

Mr Chin said the amount of cost that the government should pay will depend on how much Singaporeans are willing to fork out.

The Health Ministry has welcomed the committee’s suggestions, adding that the proposals will involve greater payouts, which in turn require higher premiums.

The ministry will also provide premium pricing advice and support to the committee, based on its recommendations.”

Govt still not spending a single cent on healthcare?

– Since the latest statistics indicate that from a cashflow perspective – the Government continues to not be spending a single cent on healthcare, and the estimated excess healthcare inflows to outflows is more than $1 billion – I estimate that even if all the recommended MediShield Life enhancements are paid entirely by the Government – total healthcare inflows may still exceed outflows. (“Latest statistics indicate Govt continues to not spend a single cent on healthcare & CPF?“, Mar 1)

1% increase in Medisave contribution rate?

Moreover, the 1% increase in the Medisave contribution rate for all workers is expected to add at least another $860 million to healthcare inflows.

$1.3b MediShield surpluses last 6 years?

Also, the estimated MediShield surpluses and accumulated interest in the last 6 years is estimated to be about $1.3 billion – meaning that the Government may not have spent a single cent on the MediShield scheme since its inception. (“Alternative news in 1 day? (part 70) – $1.3b MediShield “excess premiums” last 6 years?“, Mar 1)

So, in the final analysis – why is there a need to increase MediShield premiums?

Leong Sze Hian

 

About the Author

Leong
Leong Sze Hian has served as the president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), Hotel Mumbai (associate producer), invited to speak more than 200 times in about 40 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of 2 countries. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.