How can employers prevent the escalation of medical expenses?

Question: Are employees' medical expenses continually on the rise? What can bosses do
about this situation?

Reply:

Medical expenses for employees are likely to increase in the future as the workforce gets older.

A good way for the employer to be sheltered from the increasing cost is to pay a fixed sum to the employee, according to the level of the employee. This allows the employee to buy their own personal medical insurance. Many insurance companies now offer a Shield plan that provides lifetime coverage. The premium in each year depends on the age of the insured person and on the type of plan that is selected.

The employee can select a plan that meets his or her personal needs. They can choose a plan that covers a low class of ward and pay a lower cost. If they choose a plan that covers a higher class of ward, they have to pay a higher cost. As the employee has to pay for their own cost (after receiving the fixed subsidy from the employer), more are likely to choose a more cost effective plan.

This system has a further advantage. When the employee changes his or her job, the employee can continue the coverage under the Shield plan. The plan is not linked to the specific employer.

The Shield plan covers in-hospital treatment, and outpatient treatment for certain specified illnesses. The empoyee will have have to pay on their own for visits to the general practitioner or specialist. They should avoid seeing the doctor for minor ailments, as they now have to pay on their own. They can learn how to take care of the common ailments on their own.

Tan Kin Lian