The Office of the Insurance Commission (“OIC”) recently unveiled the future option for health insurance. The key insight was the potential for insurance companies to apply a co-payment model for their policies in the future.
Co-payment refers to the insured individual’s contribution toward medical expenses, where the responsibility is shared. This payment is specified in advance, either as a fixed amount or a percentage of the bill for covered services. This approach will benefit the insurance industry over time, as it aims to minimize excessive claims for minor ailments and avoidable hospital stays.
The elderly and those with a history of serious illness also face difficulties accessing health insurance given the high premiums. As the health insurance industry has experienced significant growth over time, the OIC has observed a concurrent rise in the number of claims and the loss ratio. This trend presents a challenge for insurance companies to develop policies that will better address the needs of Thailand’s aging society in the future.
Insurance companies have introduced a co-pay system to help lower premiums, with policyholders typically required to pay this amount at the time of service. This adjustment is designed to make health insurance more accessible to those who truly need it by reducing premiums and enhancing affordability, especially in an aging society. In the long term, this change is anticipated to benefit the industry, as lower premiums are projected to gradually increase insurance penetration rates.