I do not see how ordinary citizens can play a significant role in pre-funding the cost of a national health-care scheme like MediShield Life except to be more conscious about leading a healthy lifestyle to prevent sickness (“Role of pre-funding” by the Ministry of Health; last Wednesday).
The Government’s generous budget for health-care expenditure should provide the main funding.
Citizens also need to be encouraged to be responsible and maintain good health to keep costs down, and the insurance industry encouraged to make less profit.
The question of the affordability of premiums does not end when the Government provides help for the current cohort of elderly Singaporeans, because society will always have elderly who are poor.
If pre-funding in MediShield Life is meant for each cohort, would it not be better and fairer for policyholders to keep the funds in their respective Medisave accounts and use them when needed in old age?
MediShield Life should include a no-claims bonus for healthy elderly policyholders to pay less annual premiums. This will encourage people to adopt a healthy lifestyle to save costs while not burdening others.
The key to an affordable premium is the collective effort of all parties involved to guard against waste to save cost.
The concept of setting aside pre-funded amounts contributed by each cohort till old age is not practical because a person’s fortune, lifestyle, health and lifespan may change.
How can the prevailing “affordable” premium be administered when, in a cohort, each policyholder has different health risks at varying ages?
According to a Bloomberg study, Singapore’s health-care system is one of the most efficient in the developed world, with a very small percentage of gross domestic product (GDP) per capita spent on it. We can improve it with higher GDP allocation.
If we can resolve the cost issue of the new MediShield Life – with insurers keeping premiums level, the health-care industry controlling waste to keep costs down, and people paying less by leading a healthy lifestyle – the system would operate well with affordable premiums.
Paul Chan Poh Hoi
* Letter first appeared in ST Forum (2 Dec)