How to select a suitable health plan for now and in the future?
Regardless of whether you’re a local citizen or expat working in the Land of Smile, it might seem that the local social security system here offers sufficient protection already. After all, it’s universal, comprehensive, and affordable. Some might say a separate health insurance plan just seems like a matter of indifference. But, is this really true?
This post by Pacific Prime Thailand provides a brief overview of the main reasons and ways to purchase a long-term healthcare plan. For more in-depth information on the below, click here to download a FREE copy of our latest Long Term Health Insurance Guide – 2018 today.
Why should you secure a long term healthcare plan?
Existing public healthcare in Thailand
Thailand has one of the best public healthcare systems in Asia: the Universal Coverage Scheme (UCS). The scheme has miraculously turned the insured population rate from 25% in 2001 to almost 98% today, which allows 50 million citizens access to essential health services and major benefits at a very affordable cost.
In fact, the UCS is so successful that Kenya has sought Thailand’s assistance in formulating their own national healthcare plan a few months ago. However, no scheme is without its flaws. If you plan to go uncovered and rely solely on the UCS for the rest of your life, you might want to think again.
Threats faced by the UCS
- Aging population
The latest World Bank report released in 2016 projected that over 25% of the Thai population (17 million) will be 65 years of age or older by 2040, compared to just 10% in 2015. Together with China, Thailand will have the highest share of elderly people among developing countries in East Asia and the Pacific.
To make thing worse, the report saw a steep decline in fertility rates (1.5% in 2015) and hence foresaw a 10% decline in the working population by 2040, making Thailand the country with the steepest decline in working age population among all developing East Asian and Pacific countries.
- Growing budget
The UCS is funded mostly through government general tax revenue. Government expenditure on the system has hiked from less than US$2.6 billion in 2002 to US$7.6 billion in 2008. Due to the aging population and longer life expectancy, some studies predict there needs to be a tenfold increase in long-term care expenditure from 2000 to 2050. Additionally, another study by Thailand Development Research Institute (TDRI) even warned that the figure may be pushed to US$38 billion annually by 2032.
As a result of the looming problems posed by the aging population and soaring healthcare costs,
more people are worried that the UCS is becoming increasingly overburdened, and questioning if the government can keep the system afloat.
In light of the above, it stands to reason that you batten down the hatches by purchasing a private, long-term health plan to secure your healthcare expenses now and in the future.
How to select a suitable health plan for now and in the future
There are two major criteria that you should take into account when shopping for a long-term health insurance product, namely quality and sustainability.
Quality
- Provider network
Bigger, more reputable insurers usually have a wider range of healthcare providers. And, if you opt for an international plan, you can have access to even more quality healthcare facilities of your preference – virtually anywhere in the world.
- Scope of coverage
You should always check your policy’s scope of coverage to ascertain that your requirements are met. Other than coverage, it is also important to check the benefit limits and exclusions of your policy.
- Customer service
Customer service is another key factor to consider. Established insurance companies are more likely to offer a higher level of customer service (e.g. 24 hours multilingual service hotline, speedy claims procedure).
Sustainability
- Size of risk pool
Insurers with more members have a larger risk pool to defray healthcare costs. The larger the risk pool, the more stable and predictable premiums tend to be. Hence, it is less likely for these insurers to run into profit issues or even bankruptcy. This also makes them less likely to impose erratic premium increases to make up for losses, meaning you won’t get caught off guard by sudden premium spikes at renewal.
- History of premium hikes
Download our International Private Medical Insurance Inflation – 2018 report to compare the premium increase patterns of different insurers. The more stable a plan’s premiums are, the less likely and frequently you’ll need to switch insurers in the future. One major downside to switching insurers frequently is that new insurers will regard any conditions you’ve developed with your previous insurer as pre-existing, and thus will automatically exclude them. Choosing an insurer with a stable history of premium increases can therefore save you a great deal of time, money, and effort.
How can Pacific Prime Thailand help you?
As an established, independent insurance broker with 18+ years of experience and 7 regional offices around the globe, our team of experts at Pacific Prime Thailand are more than willing to answer any insurance or health-related question you have. Contact us now, and get a FREE quote and plan comparison.
Don’t forget to download our Long Term Health Insurance Guide – 2018!
His expertise encompasses a broad range of areas including international health insurance, employee benefits solutions, motor insurance, life insurance, and various other forms of general insurance. This breadth of knowledge enables him to distill an array of complex insurance concepts into a series of progressive, easily understandable articles.
Anthony earned his Bachelor of Arts degree from Lingnan University, majoring in Translation and minoring in English. He also studied at West Virginia University in the United States as an exchange student.
When he’s not working, Anthony can typically be found on the badminton court, in the gym, or at the theatre.
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