Friday, May 29, 2015

Universal health insurance in Indonesia

President Jokowi is introducing a universal health insurance system in Indonesia. It provides comprehensive coverage to all employees. The scheme is compulsory and employers have to register all their employees to join this scheme and to pay the premium.

The state insurer has introduced a computer system to link up all the providers (i.e. doctors and hospitals) and all the people who are insured under the scheme. The government providers have registered under the scheme and there is provision for private insurers to join the scheme.

Many employers have given notice to terminate the private insurance coverage for their employees and are moving to join the state scheme. This is likely to have a major impact on the health insurance market in Indonesia.

This is an extremely ambitious scheme and is likely to be very challenging, judging from the painful experience of America in introducing Obamacare, I wish President Jokowi well, in overcoming the daunting challenge.

1 comment:

Tan Kin Lian said...

A private health insurer told me that the challenge faced in Indonesia is the collusion between the insured person and the provider to over-bill the insurance company. I replied that this is the same challenge faced all over the world.

She said that President Jokowi intended to pass regulations to combat this over-billing.

I know that it will be difficult to manage this problem by regulation, but I cannot think of any other way to overcome it. So, I support the approach of using regulation.

Rich people who do not wish to face the restriction imposed by the universal health insurance system can go to see their private doctors and pay on their own, instead of using insurance. They can also buy private insurance, on top of the universal health insurance.

Most ordinary people will find the universal health insurance to be adequate.

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