Insurance experts have warned of the continued increase in health insurance premiums prices and called for effective supervision to adjust the price, and revealed that some insurance companies lose about 20% of revenues due to fraud operations by health care providers and misuse by beneficiaries, sudden rising of Finance costs for the treatment of beneficiaries in hospitals, medical centers and special medicines.
They also revealed that premiums of the health insurance document have increased between 15-25% three months ago after the application of the new regulation of the Council of Health Insurance which raised the minimum credit limit to 500 thousand riyals, and raised the upper limit of some benefits coverage in addition to the weakness of some insurance companies in the health purses, in addition to other factors, including inflation, prices of health services and fraud from health care providers and the to ensure the future of the company not to fall into financial losses, pointing to the presence of the parties related to the increasing prices for
reinsurers due to the application of the new regulation.
Regarding the presence of low prices in the insurance market, they stressed that there are very few companies have the low prices as a proposal from some of Actuaries due to the limited performance of those companies, and either do not have a large customer base, so it has very little loss ratio, or did not start to sell medical insurance product
The insurance expert Sulaiman bin Maeoff said, said that the lack of data lists and statistics to the insurance companies do not help the actuary to gain access to scientific and technical prices
which are fair and equitable for customers.
That is why we believe that the pricing rates of actuarial expert, based on the possibilities and hypotheses trying to avoid losses for companies, but it tends to rise, pointing out that health insurance premiums rose from 22 to 25%.
Ben Maloff explained that the recent amendment of the consolidated document for health insurance which approved by the Health Insurance Council, have forced reinsurers and insurance companies to review their calculations as a result of raising the minimum credit limit of the standardized health insurance document from 250 thousand riyals to 500 thousand riyals, and the insurance coverage include certain diseases previously excluded, such as coverage of dialysis expenses of a maximum of 100 thousand riyals and to cover the expenses of the treatment of psychological conditions for a sharp maximum of 15 thousand riyals and cover inpatient facilities expenses, and raising the upper limit of some benefits, such as lifting daily alimony for hypnosis up to 600 riyals.
bin Maeoff said that: promotion of technical reserves required to comply with the regulations and regulatory instructions, and which are in line with the recommendations of Actuaries, is an important factor in the price increase, as its reserve size is associated with the size of the company's future obligations to ensure the settlement of the possible medical insurance claims
Ben Maeoff demanded the legislator authorities to develop the sector to impose scientific criteria for the pricing of medical services and to develop mechanisms to preserve the rights of all parties, and the primary objective is the presence of health insurance premiums fair and equitable serving sector and beneficiaries.
Naji al-Tamimi, an insurance expert, said that the reasons for increased medical insurance prices of several factors, notably the recent improvements imposed by the Health Insurance Council on documents issued after the first of July 2014, as well as the steady increase in medical expenses incurred by the insurance companies, as a result of poor oversight on medical providers from hospitals & Medical Centers, pointing out that the proportion of high prices ranging between 9 and 15% of the documents which is performed well technically, and when you draw between the expenses incurred and the insurance premium points, and other inflationary factors are continuing pressure on the insurance companies.
Mohammed alkady insurance expert said that the rate of increase ranging from 15 to 25%, likely this increase is due to the application of the new regulation to cooperative health insurance document, and its contents from an increase in the extent of annual coverage and raise prices of health benefits to owners of health documents, pointing out that the extent of coverage annual of insured people is 100% (from 250 thousand to 500 thousand riyals), especially the performance of health insurance purses in general was bad in the past few years
Alkady pointed out that the main component, which helps to increase prices is the policyholder, who plays a major role in the high benefits, which necessarily leads to the insurance premium rise, and the insured is considered a major cause of the rise in losses and increase the value of the rate medical claims.
They also revealed that premiums of the health insurance document have increased between 15-25% three months ago after the application of the new regulation of the Council of Health Insurance which raised the minimum credit limit to 500 thousand riyals, and raised the upper limit of some benefits coverage in addition to the weakness of some insurance companies in the health purses, in addition to other factors, including inflation, prices of health services and fraud from health care providers and the to ensure the future of the company not to fall into financial losses, pointing to the presence of the parties related to the increasing prices for
reinsurers due to the application of the new regulation.
Regarding the presence of low prices in the insurance market, they stressed that there are very few companies have the low prices as a proposal from some of Actuaries due to the limited performance of those companies, and either do not have a large customer base, so it has very little loss ratio, or did not start to sell medical insurance product
The insurance expert Sulaiman bin Maeoff said, said that the lack of data lists and statistics to the insurance companies do not help the actuary to gain access to scientific and technical prices
which are fair and equitable for customers.
That is why we believe that the pricing rates of actuarial expert, based on the possibilities and hypotheses trying to avoid losses for companies, but it tends to rise, pointing out that health insurance premiums rose from 22 to 25%.
Ben Maloff explained that the recent amendment of the consolidated document for health insurance which approved by the Health Insurance Council, have forced reinsurers and insurance companies to review their calculations as a result of raising the minimum credit limit of the standardized health insurance document from 250 thousand riyals to 500 thousand riyals, and the insurance coverage include certain diseases previously excluded, such as coverage of dialysis expenses of a maximum of 100 thousand riyals and to cover the expenses of the treatment of psychological conditions for a sharp maximum of 15 thousand riyals and cover inpatient facilities expenses, and raising the upper limit of some benefits, such as lifting daily alimony for hypnosis up to 600 riyals.
bin Maeoff said that: promotion of technical reserves required to comply with the regulations and regulatory instructions, and which are in line with the recommendations of Actuaries, is an important factor in the price increase, as its reserve size is associated with the size of the company's future obligations to ensure the settlement of the possible medical insurance claims
Ben Maeoff demanded the legislator authorities to develop the sector to impose scientific criteria for the pricing of medical services and to develop mechanisms to preserve the rights of all parties, and the primary objective is the presence of health insurance premiums fair and equitable serving sector and beneficiaries.
Naji al-Tamimi, an insurance expert, said that the reasons for increased medical insurance prices of several factors, notably the recent improvements imposed by the Health Insurance Council on documents issued after the first of July 2014, as well as the steady increase in medical expenses incurred by the insurance companies, as a result of poor oversight on medical providers from hospitals & Medical Centers, pointing out that the proportion of high prices ranging between 9 and 15% of the documents which is performed well technically, and when you draw between the expenses incurred and the insurance premium points, and other inflationary factors are continuing pressure on the insurance companies.
Mohammed alkady insurance expert said that the rate of increase ranging from 15 to 25%, likely this increase is due to the application of the new regulation to cooperative health insurance document, and its contents from an increase in the extent of annual coverage and raise prices of health benefits to owners of health documents, pointing out that the extent of coverage annual of insured people is 100% (from 250 thousand to 500 thousand riyals), especially the performance of health insurance purses in general was bad in the past few years
Alkady pointed out that the main component, which helps to increase prices is the policyholder, who plays a major role in the high benefits, which necessarily leads to the insurance premium rise, and the insured is considered a major cause of the rise in losses and increase the value of the rate medical claims.