Causes of medical inflation that could be address

1) over investigative

2)over treatment

2)FWA fraud, waste, abuse,

3)charges discrepancy 

What else?

How to pronounce electroencephalography

electroencephalography

Sounds like

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h·lek·trow·en·seh·fuh·lo·gruh·fee

New Sustainability Act and Its Impact on Initial Insurance Premiums

      The recent legislative changes have introduced a new requirement for insurance policies to be sustainable, mandating the provision of sustainability reports to policyholders. While this act aims to protect policyholders by ensuring long-term stability and coverage, it also contributes to the rising costs of insurance premiums. Let's delve into the details of this act and its implications on both insurers and insured individuals.

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Understanding the New Sustainability Act

**Mandating Sustainability Reports**:

- **Transparency and Accountability**: The new act requires insurers to provide detailed sustainability reports to policyholders. These reports must outline how the policy is designed to remain viable and sustainable over the long term, particularly up to age 99.

- **Long-Term Protection**: By mandating sustainability, the act aims to ensure that policyholders are covered well into their later years, reducing the risk of policies lapsing or becoming underfunded.

**Impact on Premiums**:

- **Increased Costs**: Ensuring that policies are sustainable for such an extended period inevitably leads to higher premiums. Insurers must account for the increased financial risk and longer coverage duration, which translates into higher costs for policyholders.

- **Age 99 Coverage**: The requirement for policies to be sustainable up to age 99 means that premiums need to cover the potential for increased healthcare needs and other expenses associated with aging, further driving up the cost. 99 is just a number pluck from the sky, it could be 70, 80, 90, 100.

 The Role of Investment-Linked Insurance

**Investment-Linked Policies**:

- **Premium Allocation**: In investment-linked insurance policies, a portion of the premium is allocated towards insurance charges, while the remainder is invested in various funds. The insured benefits from potential investment growth, but there are associated risks and costs.

- **Higher Premiums**: Due to the sustainability requirements, the proportion of premiums allocated to insurance charges reduces. This leaves a bigger portion available for investment, yet commision structure remain at the same level for insurance charges and investment premium, potentially diminishing the overall growth of the policyholder's account.

Policy owner need to know that there are other form of insurance such as traditional life insurance, endowment, term coverage, pure personal accident insurance, pure critical illness insurance, etc. aim to address different needs of policy owner, as insurance undeniably a crutial part in financial planning.

Commission and Fees

**Unfair Commission Structures**:

- **Disparity in Charges**: A significant concern with investment-linked policies is the commission structure for insurance agents. Currently, commissions are often charged at the same level for both insurance charges and the invested premium. This is not equitable because the nature and purpose of these charges are different.

- **Higher Insurance Charges**: Commissions on the insurance charges can be quite high, often ranging from 30% to 40%, depending on the term and type of insurance. This is because insurance coverage involves ongoing risk management and support.

- **Investment Premium Charges**: For the investment portion of the premium, the commission should be lower, ideally up to 5%, which aligns with industry standards for mutual funds and similar investment products.

**Policyholder Impact**:

- **Inequitable Costs**: When the same commission rate is applied to both the insurance charges and the investment portion, policyholders end up paying disproportionately high fees. This reduces the amount allocated to their investment accounts and diminishes the overall value of their policies.

Separate Commission Structures: To address this disparity, commissions should have separate structures. For example, if 30% of the premium goes towards insurance charges, only this portion should be subject to the higher commission rate. The remaining 70%, allocated for investment, should have a lower commission rate, capped at around 5%.

Governing the Commission Structure

**BNM's Role in Regulation**:

- **Appropriate Insurance Charges**: Bank Negara Malaysia (BNM) should govern the commission structure by ensuring that appropriate amounts are charged for insurance coverage. This would involve limiting the charges to the premiums allocated for investment.

- **Preventing High Commission Products**: By regulating the commission structure, BNM can help prevent agents from upselling investment-linked insurance as a high-commission product. This practice can lead to policyholders paying more than necessary, reducing the overall value of their policies. There are dedicated investment product with much lower charges on investment. For sustainability prupose, policy holder should opt for such dedicated investment product.

https://kxlog.blogspot.com/2024/07/dedicated-investment-product-with-much.html

**Agent Training and Ethical Selling**:

- **Sufficient Training**: Insurance agents typically undergo extensive training and possess the knowledge to plan effectively for their customers. However, there is still a risk of unethical behavior where agents may upsell policies for higher commissions.

- **Unethical Practices**: Unscrupulous agents might prioritize their commissions over the best interests of their clients. This can lead to policyholders being sold more expensive products with higher fees, rather than those that best meet their needs.

- **Financial Literacy**: The financial literacy level in Malaysia is still developing. Many policyholders may not fully understand the complexities of insurance products, making them vulnerable to exploitation.

Addressing Unfair Practices

**Policyholder Protection**:

- **Regular Reviews**: Policyholders should be encouraged to regularly review their insurance policies to ensure they are getting the best value. This can help identify any unfair practices by agents.

- **Damage Control**: When policyholders discover unfair practices, they often face financial losses if they cancel their policies. This situation is unfair and highlights the need for stronger consumer protections.

- **Improving Financial Education**: Increasing financial literacy and understanding of insurance products among consumers is crucial. This can empower policyholders to make informed decisions and avoid being misled by unethical agents.

Conclusion

The introduction of the new Sustainability Act reflects a significant shift in the insurance industry, emphasizing long-term protection and transparency for policyholders. While the act aims to safeguard policyholders by ensuring that policies remain sustainable up to age 99, it also results in higher premiums and additional costs associated with investment-linked insurance policies. Regulating the commission structure and enhancing consumer education are essential steps to protect policyholders and ensure they receive fair value. Addressing these challenges is crucial to ensuring that quality healthcare remains accessible and affordable for everyone.

Advances in Medical Technology: A Professional Perspective

After interviewing a physician with 30 years of experience working in a private hospital, we gain valuable insights and heard about firsthand witness on the incredible advancements in medical technology. These innovations have revolutionized patient care, offering new possibilities for diagnosis, treatment, and management of various conditions. However, the high costs associated with these cutting-edge technologies significantly contribute to the overall increase in healthcare spending.

Cutting-Edge Technologies and Treatments

Robotic Surgeries:

Precision and Minimally Invasive: Robotic-assisted surgeries, such as the da Vinci Surgical System, provide unparalleled precision. These systems allow for minimally invasive procedures, reducing recovery times and improving patient outcomes.

Cost Implications: The initial investment in robotic surgical systems is substantial, often running into millions of dollars. Additionally, maintenance, specialized training for surgeons, and disposable instruments required for each procedure add to the costs. While these surgeries can lead to better outcomes, the financial burden is significant.

Advanced Imaging Techniques:

Enhanced Diagnostic Capabilities: Technologies like MRI (Magnetic Resonance Imaging), CT (Computed Tomography), and PET (Positron Emission Tomography) scans have transformed diagnostic capabilities. They provide detailed images that aid in early and accurate diagnosis of diseases, from cancer to neurological disorders.

Cost Considerations: The equipment for these imaging techniques is expensive, and the costs are further amplified by the need for highly trained technicians and regular maintenance. Each imaging session is costly, and frequent use of these technologies in patient care drives up healthcare expenses.

Personalized Medicine:

Tailored Treatments: Personalized medicine, including genomic testing and targeted therapies, represents a paradigm shift in how we approach treatment. By tailoring interventions to an individual's genetic makeup, we can achieve better efficacy and reduce side effects.

Economic Impact: The cost of genetic testing and developing targeted therapies is high. Personalized treatments often involve expensive drugs and complex diagnostic processes. While they offer the potential for improved outcomes, the associated costs are a considerable factor in overall healthcare expenditure.

Balancing Benefits and Costs

Improved Patient Outcomes:

The advancements in medical technology have undeniably led to better patient outcomes. Patients benefit from less invasive procedures, faster recoveries, and treatments that are specifically designed for their conditions.

For example, robotic surgeries often result in less post-operative pain, lower infection rates, and shorter hospital stays. Advanced imaging techniques enable early detection and intervention, potentially saving lives and reducing long-term healthcare costs through timely treatment.

Economic Considerations:

While the benefits are substantial, the economic implications cannot be ignored. The high costs of acquiring, maintaining, and operating advanced medical technologies contribute significantly to rising healthcare expenses.

The challenge lies in finding a balance where we can harness the benefits of these technologies without making healthcare prohibitively expensive. This requires strategic investments, cost-benefit analyses, and exploring ways to make these technologies more accessible and affordable.

Conclusion

Advancements in medical technology are a double-edged sword. On one hand, they represent the pinnacle of medical innovation, offering new hope and improved outcomes for patients. On the other hand, their high costs are a driving factor behind the escalating healthcare expenses and insurance premiums. As healthcare professionals, it is crucial to advocate for policies and practices that ensure these technologies are used judiciously and that their benefits are maximized while minimizing financial strain on the healthcare system.

Understanding the Rise in Medical Costs and Insurance Premiums

Understanding the Rise in Medical Costs and Insurance Premiums

In recent years, both medical costs and insurance premiums have seen a significant uptick. This trend has raised concerns among consumers, policymakers, and healthcare providers. Why are these costs rising, and what can be done to address this pressing issue?

Factors Driving Higher Medical Costs

1. Advances in Medical Technology:

   - Cutting-edge technologies and treatments are often expensive. While they can lead to better outcomes, their high costs contribute to overall healthcare spending.

   - Examples include robotic surgeries, advanced imaging techniques, and personalized medicine.

2. Aging Population:

   - As the population ages, the prevalence of chronic diseases such as diabetes, heart disease, and cancer increases. Managing these conditions requires ongoing medical care, driving up costs.

   - Older adults typically need more frequent and intensive healthcare services.

3. Drug Prices:

   - Prescription drug prices have been rising steadily. New, high-cost medications, especially for rare diseases and cancer, significantly impact healthcare budgets.

   - The lack of price regulation and extended patent protections can keep prices high.

4. Administrative Costs:

   - Complex billing and insurance processes add to healthcare costs. Administrative expenses in the U.S. healthcare system are among the highest in the world.

   - Efforts to streamline these processes have been slow and challenging to implement.

5. Overtreatment and Low-Value Care:

   - Sometimes, patients receive treatments or tests that offer little benefit. These unnecessary interventions contribute to higher costs without improving health outcomes.

   - Defensive medicine, where doctors order extra tests to avoid malpractice claims, also plays a role.

Why Insurance Premiums Are Increasing

1. Rising Healthcare Costs:

   - Insurance premiums reflect the overall cost of healthcare. As medical costs rise, so do the premiums charged by insurance companies.

   - Insurers must cover the expenses of more expensive treatments, medications, and services.

2. Increased Claims:

   - With more people seeking medical care, insurance companies face higher claims. This is partly due to an aging population and increased prevalence of chronic diseases.

   - Higher claims require insurers to adjust premiums to maintain financial stability.

3. Regulatory Changes:

   - New regulations and mandates can impact insurance costs. For example, the Sustainability Act introduced higher initial premium end up a much higher % of the premium being allocated to investment yet the commission structure for both insurance charges and investment allocation are at the same level.

   - Regulatory requirements can also increase administrative costs for insurers, contributing to higher premiums.

4. Market Dynamics:

   - In some areas, lack of competition among insurers can lead to higher premiums. When there are few insurers in the market, there is less pressure to keep prices low.

   - Mergers and acquisitions among insurance companies can also impact premium rates.

Addressing the Issue: Possible Solutions

1. Promoting Preventive Care:

   - Encouraging regular check-ups, vaccinations, and screenings can prevent diseases or detect them early when they are easier and less expensive to treat.

   - Insurance plans that incentivize preventive care can lead to healthier populations and lower long-term costs.

2. Emphasizing Value-Based Care:

   - Shifting from fee-for-service to value-based care models can reduce costs. Value-based care focuses on patient outcomes rather than the volume of services provided.

   - Providers are rewarded for keeping patients healthy and reducing unnecessary treatments.

3. Enhancing Price Transparency:

   - Making prices for medical services and procedures more transparent can empower consumers to make informed decisions and encourage competition among providers.

   - Transparent pricing can also help identify and eliminate unjustified cost variations.

4. Regulating Drug Prices:

   - Implementing policies to control drug prices can help reduce overall healthcare spending. Negotiating drug prices or allowing importation of cheaper medications from other countries are potential strategies.

   - Encouraging the use of generic drugs can also make treatments more affordable.

5. Reducing Administrative Burden:

   - Simplifying billing and insurance processes can cut administrative costs. Adopting standardized forms and electronic health records can streamline operations.

   - Reducing administrative complexity can free up resources for patient care.

6. Encouraging Competition:

   - Fostering competition among insurers and healthcare providers can help lower prices. Policies that prevent monopolies and promote a competitive market environment are essential.

   - Supporting new entrants and innovative models in the insurance market can increase options for consumers.

Conclusion

The rise in medical costs and insurance premiums is a multifaceted issue that requires comprehensive solutions. By focusing on preventive care, value-based models, price transparency, and regulatory reforms, we can work towards a more sustainable and equitable healthcare system. Addressing these challenges is crucial to ensuring that quality healthcare remains accessible and affordable for everyone.

Reducing Fall Risk in Aging Populations: Insights from Prof. Tan Maw Pin

Reducing Fall Risk in Aging Populations: Insights from Prof. Tan Maw Pin

Introduction

As we age, our bodies undergo various changes, and one critical concern is the increased risk of falls. Falls can have severe consequences for older adults, leading to fractures, hospitalizations, and long-term disability. Fortunately, there are proactive steps we can take to prevent falls and enhance the safety of our elderly patients.

Meet Prof. Tan Maw Pin

Prof. Tan Maw Pin is a distinguished consultant geriatrician at the University of Malaya. With extensive experience in geriatric medicine, she has dedicated her career to improving the well-being of older adults. Let’s delve into some key insights from her expertise:

Understanding Fall Risk Factors

Age-Related Changes: As we age, our eyesight, hearing, and reflexes may decline. Conditions like diabetes, heart disease, and thyroid issues can affect balance and increase fall risk.

Medications: Some medications cause side effects like dizziness or confusion, elevating the likelihood of falls. The more medications an individual takes, the higher the risk.

Footwear and Home Hazards: Unsafe footwear (such as backless shoes or high heels) and environmental hazards (like slippery floors or poor lighting) contribute to falls.

Prevention Strategies

Stay Physically Active:

Regular exercise improves muscle strength and balance.

Consider activities like yoga, Pilates, or tai chi.

Regular Health Checkups:

Vision and hearing assessments are crucial.

Address any health conditions promptly.

Home Safety:

Remove trip hazards (e.g., throw rugs).

Ensure proper lighting and secure handrails.

Bone Health:

Strengthen bones through exercise and nutrition.

Address osteoporosis risk.

Prof. Tan’s AGELESS Program

Prof. Tan leads the Transforming Cognitive Frailty into Later Life Self-Sufficiency (AGELESS) program. Funded by the Ministry of Higher Education, this initiative aims to enhance cognitive health and independence in older adults.

Conclusion

By implementing preventive measures and staying informed, we can significantly reduce fall risk among our elderly patients. Let’s join Prof. Tan Maw Pin in this critical endeavor to promote healthy aging and prevent falls.

Remember, falling is not an inevitable part of aging—it’s preventable! 🌟

References:

National Institute on Aging: Falls and Fractures in Older Adults

World Health Organization: Falls

WebMD: Why Do Older Adults Have More Falls?

Combat the risks of falls.

Preventing Falls: The Gift of Safety for Our Seniors

Preventing Falls A Gift of Safety for Senior

Imagine the peace of mind knowing your loved one is safe and sound at home.

Falls can be a real concern for seniors, but the good news is, many falls are preventable! With a few simple steps, we can create safer environments and empower our elders to live active, independent lives.

Here's how you can be a fall prevention champion:

Get active! Regular exercise strengthens muscles and improves balance, both crucial for preventing falls. Encourage walks, light stretches, or even dancing in the living room!

Safety first! Make your home a haven by removing tripping hazards like loose rugs and clutter. Install grab bars in the bathroom and ensure good lighting throughout the house. Every step counts!

Medications matter! Talk to your loved one's doctor about medications that might cause dizziness or drowsiness, increasing the risk of falls.

Support with style! Canes and walkers aren't just for the elderly anymore. Stylish assistive devices can boost confidence and improve balance, allowing seniors to stay active safely.

Patience is key!  Adjusting to new environments and physical changes takes time. Be patient and offer your support, creating a safe space for your loved one to thrive.

Preventing falls isn't just about safety, it's about showing your loved ones you care. By taking these steps, you're giving them the gift of independence, confidence, and a longer, healthier life.

Share this post with your friends and family to spread the word about fall prevention!

Let's work together to keep our seniors safe and sound.

Angsana Health is organizing a free CME session/AKN webinar to discuss fall risk in ageing populations and how to combat the risks of falls.

We are organizing this webinar with Prof Tan Maw Pin, a renowned consultant geriatrician from UMMC.

Register here with this link: https://zoom.us/webinar/register/7617155660633/WN_D9KDqAouRQmgAOojcMQNqQ, or scan the QR code in the visual.

Please register to join to learn more about helping your elderly patients reduce fall risk.

https://youtu.be/rM-AjWmAfZo?si=57rHRV6g_wVpvczE