Far East seeing ‘overpricing, overtreatment and excess billing’

Insurers are seeing an increase in invoices as hospitals, specialists and dentists in the Far East try to recoup lost income during the Covid pandemic.

This is according to Alistair Dickman, head of business development at international private medical insurance provider April Asia, who was addressing delegates at the Health Compass Transforming the Transaction in the International Private Medical Insurance Market event.

Providing a perspective on how the Far East’s IPMI market has contended with the pandemic, Dickman explained claim numbers had fallen in Q2 and Q3 of last year as people postponed non emergency treatments and pre-planned surgeries.

But from Q4 2020, as people gained more confidence, they have been returning to hospital for treatments again.

“We’re seeing quite a big increase in letters of guarantee for in patient claims, since that first wave subsided,” Dickman said.

“Here’s the rub. Along with that, we’re seeing hospitals, specialists, dentists trying to regain much needed income which they lost last year so we’re seeing our invoices go up.

“People are having unnecessary tests. We’re seeing overpricing, overtreatment and excess billing, certainly in Hong Kong, Singapore and Thailand.”

Dickman added some patients were having unnecessary treatments so a big focus for April Asia in 2021 has been managing its provider network and managing costs.

And as the economy has taken a hit, Dickman said people have lost jobs across an array of sectors resulting in increased demand for lower premiums.

“This is affecting brokers’ income. Margins are getting squeezed. All in all it’s been a huge time of change,” he concluded.

 

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