Tan Kin Lian's Blog: A hospital plan that pays without limits

Saturday, July 23, 2005

A hospital plan that pays without limits

A insurer has introduced a hospital plan that pays the bills "as charged". It does not impose any limit on the amount that can be claimed for each day of hospital stay or on the surgery fees.

This plan is likely to lead to an escalation in hospital bills. The private hospital and doctors will increase the charges to the patient who is covered under this plan, as the insurer has deep pockets.

This will lead to an increase in premium rates for the "as charged" plan. Experience in other countries have shown that this type of plan has the highest escalation in premiums.

If you are interested in the "as charged" plan, you should look at the premium rates. It is around $6,000 a year, at the older ages. This is the premium rate today. In 20 years time, it can be many times higher, due to escalation in medical expenses.

Can you afford this premium, when you grow old? Do you need to have money left for other living expenses?

You need to have an affordable plan that can cover you for a lifetime. Choose a plan that provides adequate coverage at an affordable premium.

3 comments:

Anonymous said...: We should plan for the future.

When we buy medical insurance, we should choose one that we can afford especially when we become old and the premiums become more expensive.

If we can't afford the high premiums when we are old, it is bad indeed because by then we may have developed certain illness or diseases and become uninsurable.; July 26, 2005 12:56 AM
Anonymous said...: Question :

Mr Tan,

My family is covered under Incomeshield Plan "B". Many insurers have told me that the plan is inadequate, and that we need a private plan to supplement. One major area that is insufficient is the surgical benefits, max only about $8k-$9k. They mention that one major surgery can cost $15k - $20k, or an organ transplant is hundreds of thousands of dollars.

Does Income have any plan other than the Incomeshield Shield Rider ? Thinking of upgrading to plan "A" for the higher limits (surgical benefits still not enough for big surgical cases), but probably will stay in B ward in event of hospitalisation. Make sense ?; August 02, 2005 10:27 PM
Tan Kin Lian said...: Dear Winny,

The Incomeshield plan B is adequate for hospitalisation in a B1 ward.

The charges in B1 ward are capped at certain limit, according to the medical condition. The plan B will be able to cover these charges.

Some agents mislead their customers to buy a larger plan, which cost more. As they earn commission on the premium, they want you to buy a bigger policy. This is unnecesary and wasteful.

If you want to be hospitalised in a A class ward, then you should buy our plan A. The premium is about 30% higher.

If you want to be treated in a private hospital, then you can buy a plan from another insurer. The premium is likely to be 2 to 3 times of our plan B.; August 04, 2005 10:34 PM