Claim-Based Insurance in Singapore is Here to Stay

Claims-based pricing for hospitalisation plans are here to stay.  The intent of this initiative is to reward and incentivise policy holders to help manage costs by not immediately choosing expensive private hospitals over public hospitals.  The care of public hospitals in Singapore is as good as private hospitals, but the costs are sometimes less than half for many procedures. 

This is both a carrot and stick approach.  The stick is found in the increase in premiums and the high co-insurance costs for those who opt for needlessly expensive procedures and alternatives, outside of panel recommendations.  The carrot is in the decrease in premiums for no claims in a year.  This segregates the risk and creating cost centres across demographics.