Page 51 - MEDICAL AND HEALTH INSURANCE
P. 51
MEDICAL AND HEALTH INSURANCE
charges. It will encourage implementation of claim cost control measures
to minimise claims for self-funding schemes.
There will be greater flexibility in terms of plan design and coverage and
not limited to the offering of standard plans by the insurer.
The financial impact would be in the event of unexpected high claims
there would be a potential inability to meet the claim expenses when they
arise.
2.4.6 CO-FUNDING
Under this type of arrangement, the Insured will bear a portion of the
claims and the Insurer, the balance. This is quite common, especially in
major medical insurance whereby the Insured will bear 20% of the claims
incurred and the Insurer the balance 80%.
50 | P a g e
