One word — INFLATION
In basic meaning, inflation is the general increase of prices and the drop of the value of money. And for Malaysia, the current ringgit decline against the USD adds up to the inflation especially for healthcare and medical costs.
So, WHY do I need to upgrade my medical card?
A medical card covers hospital bills when getting treatment in private hospitals in Malaysia. If you bought a medical card about 10 years ago, it most probably has lower coverage (annual limit / lifetime limit).
But that was 10 years ago. And now, 10 years after, prices had skyrocketed. Recently, we know of prices of public transportation, food, petrol and other essential goods had also gone up. And with the addition of GST, we cry even harder.
Likewise for medical costs, it’s inflation rate in Malaysia is around 15% and it is still increasing. A simple surgery for appendicitis used to cost about RM5,000 ten years ago now costs about RM12,000. It takes more Ringgit now to do less …
Why is it so expensive now??
There are many factors:
- The use of the latest technology for medical treatments
- The rise in doctors’ fee
- The price increase of medicines and drugs
- Higher demand for private healthcare
- The declined value of the Ringgit
Private healthcare (out of pocket, private health insurance) will grow from 46 per cent of total healthcare expenditure to close to 50 per cent by 2020 – Frost & Sullivan
So, what am I getting if I do the upgrade?
You get MORE coverage in the following areas:
1. Higher Annual Limit
Your old medical card usually have about RM50,000 annual limit and in today’s standard, a surgery could easily take up RM30,000 and the balance RM20,000 is nothing. We are now talking about big numbers of at least RM100,000 to RM1 million annual limits. They are big so that you do not have to keep on upgrading your medical card every 5 years or so.
2. No more lifetime limit
Old policies usually have lifetime limit of RM100,000 up to RM1.2 million and it will never be enough due to inflation. Lifetime limits are the total amount limit that you can claim in your lifetime. Current trend for medical cards now comes with NO lifetime limits, meaning, you can claim as much as you need in your lifetime even if you live up to age 100.
3. No co-insurance
Co-insurance (or co-payments or deductible) are partial payments that you need to pay in a medical bill. It is usually at 10% to 20% of the total bill that you pay out of pocket while the balance is paid by the insurance company. Most people do not like the idea of paying this co-insurance because of financial inconvenience and they also expect the insurer to foot the bill entirely. The latest medical cards now do not have co-insurance and pays the full hospital bill as charged but is subjected to the given Annual Limit.
4. Room & Board bonus reward
Like car insurance where you enjoy No Claims Bonus if there is no claims, the newer medical cards also have the same benefit but in the form of increased room & board rate if there is no claims within a period of 2 or 3 years. This is a great idea to curb rising medical inflation in the future where hospital room rates will also increase.
5. Age limit
Older medical cards will stop covering a person when he/she reaches the age of 65 or 70. This is the age where medical attention is most needed but if the coverage stops, the person will no longer have the coverage from then on. Upgrading to the newer medical card allows you to enjoy coverage up to age 100 so that you dont have to worry if you outlive the period of coverage. If you have aging parents , it is high time they do an upgrade because at the end of the day, you will need to pay for their medical bills. So, with this upgrade, you already transfer the risk to the insurance company to pay your parents’ medical bills for you.
Upgrading your medical insurance is part of planning for your retirement years — you do not want your hard-earned savings to be eaten up by crazy hospital bills!
Ok bro, I need to upgrade so what should I do now?
Before you upgrade, allow me to show you how much you are covered in your current medical card policy, just to justify if you really need the upgrade. IF you do, I will show you the upgraded plan with some options to choose from according to your budgets.
Contact me for a policy review at 016-2054088 or email to me at andymervingeorge@ gmail.com