Monday, October 30, 2017

Hike in private shield premiums

The Business Times reported the large losses incurred by the six insurers of the Integrated Plans during the past two years. Here is a table showing the results.

While the results for the past two years were bad, the results for a longer period of 10 years was actually quite good. Most of these insurers made a healthy profit over this longer period.

Consumers can expect the premiums for the Integrated Plans to be hiked by double digit figures over the next two years. They should be prepared for further hikes in the future, as the insurers struggle to manage the escalating cost of medical bills.

What can consumers do? I suggest that they should downgrade to the basic plan, i.e. Medishield Life.

I have done so, for the past few years. I do not want to give tens of millions of profit to the insurers during the good years and to suffer double digit hikes in premium during the bad years.

I will be covered under Medishield Life for the catastrophic illnesses. If I have to go for private treatment, I will pay the higher charges from my savings.

Maybe, more consumers can consider the option that I have taken.

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