Health insurance a consumer premium during crisis<\/p>\n
By I. Christianto<\/p>\n
JAKARTA (JP): Thanks to the financial turmoil plaguing the
\ncountry and chipping away at disposable income, more Indonesians
\nare signing on as health insurance policyholders, going against
\nthe popular belief that local awareness of its benefits is low.<\/p>\n
David R. Rachman of PT Asuransi Jiwa Sewu New York Life said
\nthe crisis had triggered dramatic increases in the price of
\nmedicine and hospital rates, forcing people to reconsider health
\ninsurance as an option.<\/p>\n
A director of ING Insurance, Nanny Nusalim, agreed that people
\nwere more aware today of how insurance could help them guard
\nagainst medical emergencies.<\/p>\n
\"The crisis supports people's awareness about buying health
\ninsurance. The growth rate in policyholders now reaches 70
\npercent, compared to only 30 percent before the crisis.\" Her
\ncompany has provided health insurance in Indonesia since 1976.<\/p>\n
She admitted that premiums had also increased, but argued that
\nhealth insurance still worked out to be economical.<\/p>\n
\"We can't avoid the increase in premiums. But the rise is
\nstill much lower compared to the current prices of medicine and
\nhospital treatment costs.\"<\/p>\n
Premiums have risen by an average of 25 percent, while
\nmedicine prices increased from 200 percent to 300 percent, she
\nadded.<\/p>\n
Vivien Kusumowardhani of PT Aetna Life Indonesia said the
\nbankruptcy of corporations and layoffs presented obstacles in
\nmarketing efforts for health insurance.<\/p>\n
\"But we saw growth of 70 percent in premium income in
\nSeptember this year amid the crisis. Membership also grew at 40
\npercent compared to last year.\"<\/p>\n
Awareness<\/p>\n
Many Indonesians remain reluctant to sign up for policies.<\/p>\n
Rachman said a contradiction existed in how consumers weighed
\ntheir expenditures.<\/p>\n
\"Many people still consider the cost of health insurance as
\nexpensive. They don't understand the benefits.\"<\/p>\n
Many Indonesians want to see physical evidence of their
\npurchases, something absent in an insurance policy.<\/p>\n
\"This is actually the Asian cultural background. People want
\nto get something tangible when buying something. Many still don't
\nreally comprehend the concept of insurance,\" Nusalim said.<\/p>\n
Kusumowardhani commented that Indonesians had traditionally
\nrelied on the extended family network to help them out in a
\nhealth crisis.<\/p>\n
\"When ill, a person believes that she or he still has parents,
\nbrothers, sisters, uncles and aunts to take care of him or her.
\nBut the more educated a person is, then the more aware he or she
\nwill be of the importance of joining health insurance.\"<\/p>\n
Hendra, a 35-year-old private company executive, is proof.
\nCurrently undertaking a postgraduate study program, he said he
\nviewed health insurance for his family as a security blanket.<\/p>\n
\"Besides, I don't want to trouble my parents and parents-in-
\nlaw if my wife, me or our children fall sick or are
\nhospitalized.\"<\/p>\n
His company's insurance plan covers his dependents.<\/p>\n
Robert, 33, said he understood the benefits of health
\ninsurance.<\/p>\n
\"I am covered by health insurance from my company.\"<\/p>\n
Agustine, 33, is a double policyholder. She has health
\ninsurance from her employer \"but I have also purchased life
\ninsurance\".<\/p>\n
There are those who are interested in insurance policies but
\nthe cost is beyond their means.<\/p>\n
\"I really want to buy one, but during this financial crisis, I
\ndon't have any budget for it,\" said Sumartoyo, 25.<\/p>\n
Scheme<\/p>\n
Group and individual are the health insurance schemes on
\noffer, with the main difference between the two being the
\nrequirement of evidence of insurability.<\/p>\n
People planning to buy individual insurance are usually
\nrequired to answer a health questionnaire and undergo a medical
\nexamination to provide evidence of insurability to the insurer.
\nNot all insurers require the medical exam.<\/p>\n
An insurer may decline coverage on the basis of the
\napplicant's personal profile including lifestyle habits, age,
\nhealth, medical background or other items with a bearing on risk
\nacceptance.<\/p>\n
Which scheme provides greater benefits?<\/p>\n
People with known health problems and who might otherwise be
\nunable to obtain individual insurance could be covered
\nautomatically upon employment without providing evidence of
\ninsurability. However, there may be some limitations to their
\ncoverage.<\/p>\n
Group insurance commonly offers a lower cost per unit of
\nprotection than individual insurance because of the economies of
\nscale resulting from selling, installing and servicing one plan
\ncovering many individuals. They are typically more flexible and
\ntend to provide more liberal benefits than individual coverage.<\/p>\n
In the meantime, many insurers offer individual insurance as a
\nrider. This means a person has to join a life insurance plan
\nfirst as a primary product before taking the health insurance
\nplan.<\/p>\n
Group insurance offers several advantages, both for employers
\nand employees.<\/p>\n
According to Rachman, employers will enjoy fixed budgets,
\nminimize administration loading and control costs.<\/p>\n
\"It's not a secret that some people can cheat or manipulate
\nhealth allowances. Employees can claim reimbursement for any
\nprescription though they are not ill. With an insurer, such a
\ncase will not happen. Or, at least, the risk is on the insurer.\"<\/p>\n
Employees will be more protected because of the reimbursement
\nand flexibility, he said. Indemnity plans provide the insured
\nwith substantial freedom relative to the choice of physicians,
\nparticularly important for those who travel a lot, he added.<\/p>\n
Rachman said many leading companies now had insurers to
\nimprove professionalism.<\/p>\n
\"Many big companies have had insurers, but the small ones are
\nstill self-insured, using their own plan for medical expenses.
\nFamily-run firms are particularly reluctant to use insurers.\"<\/p>\n
Kusumowardhani said Aetna Life had a growing client roster.
\n\"About 80 percent (of the group insurance) are domestic
\ncompanies.\"<\/p>\n
How to make the best choice from the 60 insurers in the
\nIndonesian market?<\/p>\n
Rachman suggested that prospective policyholders examine
\ncompany profiles and look into the backgrounds of the owners,
\npartners and other relevant facts.<\/p>\n
\"It is important to fathom the investment policy, how the
\ninsurance company reinvests the money. Also check the claim
\npayment schemes. Do the annual premium rates significantly differ
\nfrom year to year? What people need and what the company offers
\nmust be matched.\"<\/p>\n
Nusalim said the public was seeking information about foreign
\nor joint-venture insurers because of the crisis shredding public
\nconfidence in domestic banks.<\/p>\n
He said most disputes over claims were insignificant and
\neasily resolved.<\/p>\n
\"In our experience, if there is a dispute, it's usually only
\nbecause of invalid form filling. Many people get the forms filled
\nby other people so there are sometimes small disputes. It is,
\nhowever, trivial.\"<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/health-insurance-a-consumer-premium-during-crisis-1447893297",
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