Sunday, April 03, 2011

Choosing A Medical Plan

I summarized from an article by Tho Li Ming:

Medical card provide coverage for:
- room and board (usually range from RM100-RM500, but RM200 is most popular)
- hospitalization and surgical (H&S)
- intensive care unit (ICU)
- post-outpatient treatment (eg kidney or cancer treatment)

Seeking overseas treatment?
- Make sure got worldwide coverage
- Coverage will be based on local charges
- Condition: policyholder does not stay overseas >90days/trip
- Policyholder need to pay first, and will get money back later in Malaysia
- They suggest to purchase ‘travel insurance’ instead.. hmm..

Coverage for external devices?
- Eg wheelchairs, crutches, pacemakers, organs
- Tapi premium will be higher lar..
- Some Personal Accidents (PA) policy have it

Standalone Plan vs Rider?
- Coverage tends to be the same
- Some standalone plan offer guaranteed renewable plan
- The more it covers, the higher the premium..
- Standalone plan usually more expensive than riders (due to administrative costs)
- Rider plan are 20% cheaper
- Riders must be accompanied by a basic plan (may end up with higher premium)  take not

Rider link to conventional life policy or investment-linked policy?
- Rider link to conventional policy is cheaper (but its premium is higher)
- Meaning oni rider is cheap.. penipuan terbesar!!

Co-insurance vs Zero Deductible?
- Coinsurance -> Patient pay predetermined % of total bill (with maximum amount), insurer cover the rest
- Zero Deductible -> we don’t need to pay money at all!! (Tapi we need to pay higher premium lar)

Cashless vs Reimbursement Plan?
- Cashless -> Only pay charges that not covered by insurer (30-40% more expensive!)
- Reimbursement Plan -> We need to pay all the bill first, and claim back later

Choosing a Medical Card? Pening lar..
- Check its annual claim and lifetime limits (accident prone ppl, better take higher annual limit, rather than higher lifetime limit)
- Get those with protection for critical illness (min of RM100,00 coverage upon diagnosis in the future)
- Take note of medical inflation rate -> 17-20% per year
- Check whether got guaranteed renewal limit? (can renew till 70,80 or 100 years old?)
- Some plans have additional benefit (eg, emergency overseas medical assistance, no-claim bonus)
- All insurance companies offer 15-day free-look period (can get refund if tak suka!)
- If want to do comparison, compare the following:
- Premium that we need to pay
- Annual limit
- Lifetime limit
- Percentage and capping of co-insurance
- Tenure coverage for different benefit

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