Hoon Hian Teck on supporting healthcare
When it comes to health insurance, individuals know their own risk level better than the insurer. This might cause those who are more likely to have adverse health outcomes to buy an insurance policy, leading the insurer to lose money. The result is the inadequate provision of private insurance. In the face of this “adverse selection” problem, there is a role for the Government to intervene by providing social insurance in the form of MediShield Life. NMP Hoon Hian Teck made the point in Parliament on Wednesday (May 10). He said the national health insurance scheme has three important features - it includes all Singapore citizens and Permanent Residents, pre-existing medical conditions are covered and the Government provides subsidies to low-income residents to help them make their premium payments. For the scheme to be financially sustainable, it is vital that the economy continues to generate good jobs, because the main source of financing premium payments comes from individuals’ MediSave accounts. With that in mind, Prof Hoon said the recent recommendation by the Advisory Committee on Platform Workers to make regular contributions to MediSave is also timely.
When it comes to health insurance, individuals know their own risk level better than the insurer. This might cause those who are more likely to have adverse health outcomes to buy an insurance policy, leading the insurer to lose money. The result is the inadequate provision of private insurance. In the face of this “adverse selection” problem, there is a role for the Government to intervene by providing social insurance in the form of MediShield Life. NMP Hoon Hian Teck made the point in Parliament on Wednesday (May 10). He said the national health insurance scheme has three important features - it includes all Singapore citizens and Permanent Residents, pre-existing medical conditions are covered and the Government provides subsidies to low-income residents to help them make their premium payments. For the scheme to be financially sustainable, it is vital that the economy continues to generate good jobs, because the main source of financing premium payments comes from individuals’ MediSave accounts. With that in mind, Prof Hoon said the recent recommendation by the Advisory Committee on Platform Workers to make regular contributions to MediSave is also timely.
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