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01-09-2013, 10:10 AM
An honorable member of the Coffee Shop Has Just Posted the Following:
Last year Medishield to in far more premiums than the total it paid out to the insured.
The difference is a whopping 30%. Is the Medishield a break even system or is it building surpluses and profit within the scheme.
Covering the old and those with pre existing conditions in principle is the right thing to
do. In order to include patience with expected higher medical bills in the future, mathematically we
have to expect premiums to go up in order for the scheme not to go into deficit. How the extra premium is distributed is open to discussion - Chua Mui Hong suggested that pple with pre existing conditions like herself be group into a high risk group and pay more, others believe it should be a flat scheme where those who have pre existing conditions pay the same as those who do not. Of course how mucht load those in a higher risk group is a matter for discussion because iI the loading is too high, yo may not be lessening the burden of these people...,if they pay the same as others then the premium increase may be hard for healthy people within pre existing to stomach.
Form this scheme to work, Msdishield must now be made compulsory as with all insurance system that cannot reject pple with pre existing conditions.....otherwise people can enrol only when they get sick causing the scheme to be infeasible...
Because pple cannot get out of the scheme, we must now put in place an a curial audit to ensure the scheme does no lead to excessive surplus. In the past, pple who believe medishield is making money can refuse enrolment into the scheme. So as a tax payer I find it hard to support the scheme unless it is in dependently established it is not a designed to generate surplus.
Next is the increase in premiums. At the end of the day it is about taking more from each person to help those who need medical care the most. How is this different from taxes such as GST or income tax? It is somewhere in between in terms of progressiveness. It would be better if this increase in premium be funded by progressive income tax on the rich or cuts in other areas of spending SK as to not further burden our middle and lower middle income groups.
Click here to view the whole thread at www.sammyboy.com (http://sammyboy.com/showthread.php?161663-Do-an-accuarial-audit-of-Medishield-before-changes-are-made&goto=newpost).
Last year Medishield to in far more premiums than the total it paid out to the insured.
The difference is a whopping 30%. Is the Medishield a break even system or is it building surpluses and profit within the scheme.
Covering the old and those with pre existing conditions in principle is the right thing to
do. In order to include patience with expected higher medical bills in the future, mathematically we
have to expect premiums to go up in order for the scheme not to go into deficit. How the extra premium is distributed is open to discussion - Chua Mui Hong suggested that pple with pre existing conditions like herself be group into a high risk group and pay more, others believe it should be a flat scheme where those who have pre existing conditions pay the same as those who do not. Of course how mucht load those in a higher risk group is a matter for discussion because iI the loading is too high, yo may not be lessening the burden of these people...,if they pay the same as others then the premium increase may be hard for healthy people within pre existing to stomach.
Form this scheme to work, Msdishield must now be made compulsory as with all insurance system that cannot reject pple with pre existing conditions.....otherwise people can enrol only when they get sick causing the scheme to be infeasible...
Because pple cannot get out of the scheme, we must now put in place an a curial audit to ensure the scheme does no lead to excessive surplus. In the past, pple who believe medishield is making money can refuse enrolment into the scheme. So as a tax payer I find it hard to support the scheme unless it is in dependently established it is not a designed to generate surplus.
Next is the increase in premiums. At the end of the day it is about taking more from each person to help those who need medical care the most. How is this different from taxes such as GST or income tax? It is somewhere in between in terms of progressiveness. It would be better if this increase in premium be funded by progressive income tax on the rich or cuts in other areas of spending SK as to not further burden our middle and lower middle income groups.
Click here to view the whole thread at www.sammyboy.com (http://sammyboy.com/showthread.php?161663-Do-an-accuarial-audit-of-Medishield-before-changes-are-made&goto=newpost).