I do not understand the rationale behind an increase in ISP premiums, where one reason given is over charging and over consuming private healthcare service. Any advice?

Generally, healthcare insurance policies in Singapore works on the concept of risk pooling. In effect, the overall consumption of healthcare facilities (and therefore its cost) has a direct impact on this pool. As mentioned in the link that you have provided, possible reasons could be the way the patients were charged for the medical treatments that they require.

Moreover, medical inflation has hit 10% in 2019. Even when we assume the claim experience to be the same, the overall claim amount rises by at least 10%. Now, we pair it together with higher claim experience in the recent years. This results in an overwhelming stress upon the available pool of money for all the consumers.

Of course, if you are a Singaporean, or a Permanent Resident, we can choose to fall back upon MediShield Life. But there exists a question on the adequacy on its coverage.

More Details:

Is MediShield Life enough in Singapore?

This is when we may choose to enhance our coverage with a private integrated shield plan.

More Details:

Integrated Shield Plan Singapore: A Starter's Guide

Meanwhile, insurance companies are doing what they can to control the overall claim experience. For instance, they have the section on Pro-Ration Factor (see Part 3.1), panel doctors, etc. All these measures are in place to work with Ministry of Health's guidelines to make the healthcare system sustainable for everyone in the long run.

At the end of the day, what happens if we don't work together? Consequently, private integrated shield plan providers may choose to withdraw the plans entirely. In the end, consumers suffer. With this in mind, it is important for all parties to work together to create long-term sustainability.

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