Claims-based pricing for rider only a band aid

CALL it a bold move or a risk-pooling defying one, but insurer Prudential's take on mitigating escalating healthcare costs from private hospitals is unlikely to have much of an effect in keeping a lid on its claims costs.

Late last month, the insurer announced that it would roll out from May a claims-based pricing approach for its PRUshield Extra A Premier plan - the "claimable from first dollar" rider that covers treatments at private hospitals - affecting new sign-ups and those who renew their plans.

Essentially, a policyholder subscribing to this rider for private hospital treatments would have their renewal premiums tagged to their claims.