Wednesday, April 30, 2014

Co-Pay Health Insurance

Co-Pay Health Insurance

The present health insurance plans are inherently prone to abuse by hospitals, doctors and consumers. Hospitals are incentivised to prescribe expensive and unnecessary drugs and procedures and consumers too tried to maximize their “return”. This has resulted in ever expensive medical cost and higher insurance premiums. It is a classic case of tragedy of the commons. Medical insurance has become unaffordable to many and for people who can afford one have to sacrifice other spending like education and also savings.

A Co-Pay Health Insurance Plan will greatly reduce the abuse. The insured will need to pay 10 to 30% of any medical expenses incurred. This will make them think harder and make more sensible choices before they seek medical treatments because they will now have to pay a portion of the bill. The plan also required the insured to pay the bill first and then submit the claim, this will further inhibit abuse. The consumers will also tend to shop wiser when they need medical service. They will likely opt for much cheaper generic rather than branded drugs which are basically the same except in price and packaging.

Doctors and hospitals are well known for charging more and have incentive to prescribe unneeded treatments for patient who has insurance. This will further deduce the cost.

The plan will make premium much lower than the present system and making medical insurance more affordable to everyone. It will also reduce the workload of hospitals and doctors and free up capacity for urgent and genuine needs. 

This could potentially reduce a nation’s total medical expenses by 30 to 50% or even more in a short time. It can be sold by the same health insurance companies or new ones and the first to start will have a great advantage over others.

Tell me what you think about the idea.

Wednesday, April 16, 2014

A Way to Eliminate Cheque Fraud

Cheque Fraud
Cut and paste forgery. - STAR

To the editor
The Star Daily Malaysia

As featured in your recent article, millions of ringgits are lost each year alone in Malaysia. Crooks are getting better in using technology in check forgery scams. Billions of dollars has been lost worldwide and billions more will be lost in the future. And cheques will continue to be used for the foreseeable future.

I have an idea that can eliminate cheque frauds once and for all. It is simple, all banks are required to set up a login page for all cheque users to register every cheque (the number, amount, date and payee) once they are issued, including post dated cheques. And the banks will release the money only if they tallied with the cheques presented. The cost will be minimal as all banks have online banking service. All entries will be done by the cheque issuers. And it is a small price to pay for eliminating the danger of being scammed.