Re: SDP: Real Purpose of Medishield Life is To Take SGs' Medisave to Pay Hospital Deb
That's baloney. Healthcare in sinkapore is NOT cheap by regional standard. If you want to compare sinkapore with US, why don't you compare the cost of living, housing etc. You can't pick and choose to justify your bs.
The reason why Medical Loss Ratio (MLR) – sums paid out divided by premiums collected – is controlled by legislation in national healthcare schemes is to (a) prevent insurers from taking huge profits and (b) to prevent large sums of citizens' funds from being locked up in a non-performing 'asset'.
Private insurance plans are exempt, because they're profit-oriented. But nationally funded universal healthcare schemes are not-for-profit, but rather to provide universal healthcare access for everyone. That's why MLR for national healthcare insurance in most Western countries is not allowed to drop below a floor of 80–90%.
64% MediShield payouts means
36% profit for the govt, for a supposedly non-profit scheme! Go figure.
