Financial adviser Leong Sze Hian said that in the last 5 years, the excess of premiums to claims made against Medishield, was S$2.3 billion. He also asked about the excess of premiums to claims for the prior 19 years since the Medishield scheme started in 1990s. “Every year the premiums exceed the claims, what about the interest? The money don’t sit there. What about the excess of the premiums to the claims? We have no transparency. ” Singapore Democratic Party Treasurer, Ms Chong Wai Fung, noted that for the past 11 years, Medishield has an average medical loss ratio of 63%. For 2013, the medical loss ratio reached a historical low of 43%, which means that for every $100 collected through Medishield, the scheme only paid out $43. The rest is paid out of pocket by citizens. By comparison, the US, which she said is the most capitalist of countries, private health insurance schemes are not allowed to have a medical loss ratio of less than 80%, meaning the companies offering such schemes cannot have profit of more than 20%. Ms Chong said, “The Government must stop making profit off the back of Singaporeans when they fall ill. It must assume its responsibility in line with what other First World governments are doing. There is no need to raise taxes to 50%, or raid the reserves, as suggested by the government.”Financial adviser Leong Sze Hian said that in the last 5 years, the excess of premiums to claims made against Medishield, was S$2.3 billion. He also asked about the excess of premiums to claims for the prior 19 years since the Medishield scheme started in 1990s. “Every year the premiums exceed the claims, what about the interest? The money don’t sit there. What about the excess of the premiums to the claims? We have no transparency. ” Singapore Democratic Party Treasurer, Ms Chong Wai Fung, noted that for the past 11 years, Medishield has an average medical loss ratio of 63%. For 2013, the medical loss ratio reached a historical low of 43%, which means that for every $100 collected through Medishield, the scheme only paid out $43. The rest is paid out of pocket by citizens. By comparison, the US, which she said is the most capitalist of countries, private health insurance schemes are not allowed to have a medical loss ratio of less than 80%, meaning the companies offering such schemes cannot have profit of more than 20%. Ms Chong said, “The Government must stop making profit off the back of Singaporeans when they fall ill. It must assume its responsibility in line with what other First World governments are doing. There is no need to raise taxes to 50%, or raid the reserves, as suggested by the government.”
Posted on: Sun, 13 Jul 2014 05:17:10 +0000
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