A simple medical insurance product

Hi Mr Tan,

I find the calculation of the medical insurance claim to be difficult. Why should there be so many deductions from the hospital bill? Most people pay a premium, and want the insurance company to take care of the entire bill. Is there a simpler insurance plan?

------------------------------------------

REPLY

The simpler plan (which I prefer) is a plan that pays a fixed sum (say $200) for each day of stay in a hospital. This is simple for the customer, and for the insurance company. It is call a "hospital cash" plan.

This plan will pay a substantial part of the hospital bill. It also gives the incentive for the patient to find out the most cost effective treatment (rather than incur a large bill). The patient can consult the insurance company for advice on where to get the cost effective treatment.

This approach is best for all parties - the consumer, the insurance company and the medical provider.