Raising Of Premiums

When I heard this piece of news that meant all insurers were effectively raising the premiums of their Integrated Shield Plans (IPs), I knew that I might have to reevaluate my health care insurance strategy.

After all, according to the same report, “Claims for IPs covering treatment in private hospitals have risen by 17 per cent a year in the past few years” and in case you did not know, insurance companies are profit-making in nature (there are shareholders) and when their costs increase, they are just going to pass it on.

So I expect premiums to be raised again in a few years’ time.

Imperfect Information & Moral Hazard 

Imperfect information is a really big issue in the healthcare industry. The customers knows so much less than the providers. For most of us, it is very difficult to question a doctor’s advice.

Adding …