Tuesday, February 18, 2014

How to stop increases in medical cost

he Prime Minister has announced that Medishield will be extended to cover health care for a lifetime, will cover pre-existing conditions and cover people who were excluded previously.

The public is worried that the premium for the new scheme, called Medishield Life, will increase significantly. There are discussions on who should bear the higher cost, and if pre-funding can be a way to make the scheme more affordable to older people (by getting them to pay more when they are young).

I have submitted my views on the key elements that have to be dealt with. There is a need for Medishield Life management to negotiate the fees for medical treatment, and to have advice on what are appropriate treatment to be given to patients. If there is no control over these matters, consumers will have to pay higher premiums as medical costs can escalate.

The outsourcing of Medishield to private insurers does not help to improve the situation. It leads to higher cost, due to marketing and private sector profits.

Read the PDF for more details.

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