General Information on Medical Repricing

1.       What is medical rate revision?

It is a revision of rates or charges due to medical claims higher than expected. Higher medical claims are contributed by rising of healthcare cost due to advancement of technology and higher usage of healthcare services.
 

2.       What is risk pooling / sharing of risk?

Risk pooling in medical insurance is when a large group of people contribute money to a shared fund. This fund is used to pay for medical expenses for anyone in the group who needs it. By pooling their money, the risk and cost of healthcare are spread out, making it more affordable for everyone.

If the amount of money paid from the shared fund for medical claims exceeds expectations over time, the insurance company may need to adjust their rates or charges to ensure that all group members can continue enjoy the coverage.
 

3.       How will the medical rates revision affect my medical plan?

Traditional plan

Your premiums will be revised, and you will have to pay the revised amount to continue enjoy the coverage.
 

Investment-linked plan

With the increases of cost of insurance/ insurance charge, more units will be deducted from your fund value to pay for the higher cost of insurance/ insurance charge. If you continue to pay the same amount of premium, your medical coverage end earlier than expected.

Hence, you are strongly recommended to pay the additional top up premium in order to cover the increase cost of insurance/ insurance charge and continue enjoy the coverage.
 

4.       What if I terminate my existing medical coverage and purchase a new medical plan?

It is not recommended to terminate your existing medical coverage and purchase new medical plan as you may be subjected to new terms and conditions such as waiting period. If you have pre-existing conditions, getting new medical plan may be difficult or limited.