Thursday, October 1, 2009
Privacy of patient data
According to this report from the consultant McKinsey, it is better for the patient records to be available for analysis and hold doctors accountable to deliver the expected level of care. Campaigners for privacy may be playing into the hands of people who does not wish to be accountable for their mistakes or bad practice. This is an interesting conclusion.
Central Medical Records
A few months ago, I carried out a survey about the value of a central medical record system. Many respondents replied that they are interested to join this system, as it allow any doctor that is treating them to access the medical records. It also avoids having duplicate medical tests to be taken. Here are the survey results.
This system is designed primarily to handle the outpatient records (i.e the medical records that are kept in GP clinics). It is not intended to capture the detailed specialised records that are kept in hospitals.
You can read more about this system in this document. You can test the Demonstration system directly here.
This system is designed primarily to handle the outpatient records (i.e the medical records that are kept in GP clinics). It is not intended to capture the detailed specialised records that are kept in hospitals.
You can read more about this system in this document. You can test the Demonstration system directly here.
If you like the system, please help me to pass the word around to doctors, employers, insurance companies and the health authority. It can help to improve the delivery of medical services in Singapore.
NOTE: The records in this demonstration database are fabricated. In the real system, there will be controls to ensure that only the patient and the doctors authorised by the patient can see the records.
Benefit Illustration for a Life Insurance Policy
When the agent gave you a benefit illustration, did the agent explain the following?
1. That you have a 14 day free look period to cancel the policy for a full refund?
2. That the amount shown as "distribution cost" s taken away from your premium?
3. That the "effect of deduction" is taken away from your investments to pay the various charges under the policy?
If the agent has explained these points to you clearly. the agent is being transparent and can be trusted. If some of the information is hidden from you or the explanation is not clear, you have to read the benefit illustration again. If you need help, you can approach FISCA, www.fisca.sg
Tan Kin Lian
1. That you have a 14 day free look period to cancel the policy for a full refund?
2. That the amount shown as "distribution cost" s taken away from your premium?
3. That the "effect of deduction" is taken away from your investments to pay the various charges under the policy?
If the agent has explained these points to you clearly. the agent is being transparent and can be trusted. If some of the information is hidden from you or the explanation is not clear, you have to read the benefit illustration again. If you need help, you can approach FISCA, www.fisca.sg
Tan Kin Lian
Special treatment for Minibonds
There is a difference between Minibonds and the other credit-linked notes (i.e. Pinnacle Notes, High Notes).
For Minibonds, the credit default swaps did not fail. Only the swap counter-party (i.e. Lehman subsidiary) failed due to the liquidation of Lehman Brothers. PriceWaterhouseCoopers was appointed to arrange for the underlying assets to be released from the swap counter party and tranferred to another investment bank to handle the settlement.
For some notes, such as High Notes 5, Lehman Brothers was named as a reference entity for the credit default swap. The failure of Lehman Brothers caused the entire investment to be worthless.
For the Pinnacle Notes, the failure of a certain number of the underlying assets will cause a substantial or total loss of the investments. The investors have to wait and hope that these underlying assets do not fail. If they do, the investments will also be worthless.
It is not possible for any action to be taken to save the investments in the Pinnacle Notes, except to sell the notes to another party who is willing to take the gamble that it will not fail.
Different series of each credit linked notes are invested in different underlying assets and have different structures. It is difficult to make a general statement regarding these notes.
The Minibond class actions, led by Conrad Campos, are mainly to sue the distributors for failing in their duty to give proper advice to the investors. This is a separate matter from realising the value of the underlying assets.
For the same reason, the Hong Kong settlement only covered the Minibonds and not the other credit linked notes.
Tan Kin Lian
For Minibonds, the credit default swaps did not fail. Only the swap counter-party (i.e. Lehman subsidiary) failed due to the liquidation of Lehman Brothers. PriceWaterhouseCoopers was appointed to arrange for the underlying assets to be released from the swap counter party and tranferred to another investment bank to handle the settlement.
For some notes, such as High Notes 5, Lehman Brothers was named as a reference entity for the credit default swap. The failure of Lehman Brothers caused the entire investment to be worthless.
For the Pinnacle Notes, the failure of a certain number of the underlying assets will cause a substantial or total loss of the investments. The investors have to wait and hope that these underlying assets do not fail. If they do, the investments will also be worthless.
It is not possible for any action to be taken to save the investments in the Pinnacle Notes, except to sell the notes to another party who is willing to take the gamble that it will not fail.
Different series of each credit linked notes are invested in different underlying assets and have different structures. It is difficult to make a general statement regarding these notes.
The Minibond class actions, led by Conrad Campos, are mainly to sue the distributors for failing in their duty to give proper advice to the investors. This is a separate matter from realising the value of the underlying assets.
For the same reason, the Hong Kong settlement only covered the Minibonds and not the other credit linked notes.
Tan Kin Lian
Difference of 20% in Term Insurance premium
Hi Mr. Tan,
I got 2 different quotations for 30-year level term insurance covering death, terminal illness, and total permanent disability, sum assured S$400k.
Company X: S$752/year
Company Y: S$628/year
I asked the agent why Company Y is 20% more expensive. She said that it is easier to make claims under Company X. Is this true? Is it worthwhile paying the higher premium to make easier claims?
REPLY:
Do not believe the agent from Company X. Do not pay 20% more. The claim process should be the same.
I got 2 different quotations for 30-year level term insurance covering death, terminal illness, and total permanent disability, sum assured S$400k.
Company X: S$752/year
Company Y: S$628/year
I asked the agent why Company Y is 20% more expensive. She said that it is easier to make claims under Company X. Is this true? Is it worthwhile paying the higher premium to make easier claims?
REPLY:
Do not believe the agent from Company X. Do not pay 20% more. The claim process should be the same.
Free market (10) - Consumer protection
The governments in most countries consider it their duty to protect consumers from the bad practices of businesses.
In the financial services sector, it is possible for the financial institution to design products that take advantage of the ignorance of consumers and entice them with misleading promises that are not kept.
In the medical field, it is possible for drug companies to introduce products that may are unsafe for consumption or make benefit claims that are not verified by scientific evidence.
There used to be strong regulations on the sale of financial products, but the regulations have been weakened in recent years, during an era of deregulation. It was thought that, to promote financial innovation, financial products can be sold on the basis of product disclosure, and that should be left to make their own judgement about the suitability of the product, with the advice of financial advisers.
This approach turned out to be disastrous, as financial institutions introduced complex products that are designed to take advantage of the ignorance of consumers to reap big profit for the issuers. These products are sold with attractive commissions paid to the financial advisers, who pushed the products to consumers regardless of their suitability.
In America, the regulators took action to hold the financial institutions and advisers accountable for any misdeed. New legislation is now being introduced to set up an agency to protect consumers from predatory practices of financial institutions.
Singapore should consider similar measures as the problems faced by consumers here are of more serious than in America.
Fortunately, the control of the sale of drugs continues to be strongly regulated and consumers are well protected.
Tan Kin Lian
In the financial services sector, it is possible for the financial institution to design products that take advantage of the ignorance of consumers and entice them with misleading promises that are not kept.
In the medical field, it is possible for drug companies to introduce products that may are unsafe for consumption or make benefit claims that are not verified by scientific evidence.
There used to be strong regulations on the sale of financial products, but the regulations have been weakened in recent years, during an era of deregulation. It was thought that, to promote financial innovation, financial products can be sold on the basis of product disclosure, and that should be left to make their own judgement about the suitability of the product, with the advice of financial advisers.
This approach turned out to be disastrous, as financial institutions introduced complex products that are designed to take advantage of the ignorance of consumers to reap big profit for the issuers. These products are sold with attractive commissions paid to the financial advisers, who pushed the products to consumers regardless of their suitability.
In America, the regulators took action to hold the financial institutions and advisers accountable for any misdeed. New legislation is now being introduced to set up an agency to protect consumers from predatory practices of financial institutions.
Singapore should consider similar measures as the problems faced by consumers here are of more serious than in America.
Fortunately, the control of the sale of drugs continues to be strongly regulated and consumers are well protected.
Tan Kin Lian
RED Portal (16) - Nearby Projects
If you wish to choose a project near a certain school, you can go to the RED portal, click on Search >> Popular places, enter the name of the school and you will get a listing and a map showing all housing projects within 1 km. You can see the benchmark price of these projects to see if any fit within your budget. You can then drill down to look at the recent detailed transactions.
You can also buy a detailed RED property report for $25 only. You also have the option to buy a more detailed report from the Street Sine website, also for $25 only.
The RED portal is designed to provide information that is easy for you to access. Get the information, before you talk to any property agent. Make sure that you get a good price if you wish to buy or sell any condo or apartment.
RED portal.
You can also buy a detailed RED property report for $25 only. You also have the option to buy a more detailed report from the Street Sine website, also for $25 only.
The RED portal is designed to provide information that is easy for you to access. Get the information, before you talk to any property agent. Make sure that you get a good price if you wish to buy or sell any condo or apartment.
RED portal.
Bad advice by agents on Term Insurance
Some consumers approached an agent to buy Term insurance. The agent quoted a Term insurance premium that is more than twice what it available in the market. The agent pointed out that it is too much money to pay for the Term insurance, and sell a Whole Life, Critical Illness or Investment Linked policy instead.
This is misleading and bad advice. But it is used by the agent to get customers to buy a high cost product.
If you wish to buy Term insurance, you have to approach several insurance companies directly and get a quotation from them. Look for a Term insurance policy to cover 25 years or to cease at age 60. Do not go beyond this age, as the premium rate will be too high and the insurance is not necessary (after your children have grown up and you have sufficient savings).
Tan Kin Lian
This is misleading and bad advice. But it is used by the agent to get customers to buy a high cost product.
If you wish to buy Term insurance, you have to approach several insurance companies directly and get a quotation from them. Look for a Term insurance policy to cover 25 years or to cease at age 60. Do not go beyond this age, as the premium rate will be too high and the insurance is not necessary (after your children have grown up and you have sufficient savings).
Tan Kin Lian
US economy is still struggling
Quote
Oct. 1 (Bloomberg) -- U.S. stocks fell the most in three months as Treasuries and the dollar rallied after a decline in a gauge of manufacturing and an increase in jobless claims spurred concern over the strength of a recovery from the recession.
Unquote
Several economists have expressed the worry that the current recovery is due to the government stimulus. After the stimulus is spent, the economy will face the same difficulty as before - reduced consumer spending and confidence.
The underlying problems of the free market economic system has not been solved - high unemployment, extreme disparity of income, high dependence on mis-priced leverage, bubble in asset prices.
Interest rate is now too low, due to the infusion of public money. When the infusion stops, interest rate will have to increase to a higher level, and that will also affect the stock and property markets.
My view: Do not rely on low interest rate for too long. Do not invest and lock up your money on low interest rate for a few years. Do not invest in property or stocks at inflated prices.
Tan Kin Lian
Oct. 1 (Bloomberg) -- U.S. stocks fell the most in three months as Treasuries and the dollar rallied after a decline in a gauge of manufacturing and an increase in jobless claims spurred concern over the strength of a recovery from the recession.
Unquote
Several economists have expressed the worry that the current recovery is due to the government stimulus. After the stimulus is spent, the economy will face the same difficulty as before - reduced consumer spending and confidence.
The underlying problems of the free market economic system has not been solved - high unemployment, extreme disparity of income, high dependence on mis-priced leverage, bubble in asset prices.
Interest rate is now too low, due to the infusion of public money. When the infusion stops, interest rate will have to increase to a higher level, and that will also affect the stock and property markets.
My view: Do not rely on low interest rate for too long. Do not invest and lock up your money on low interest rate for a few years. Do not invest in property or stocks at inflated prices.
Tan Kin Lian
Minibond holders may get back some money
Read this report in CNA.
There was no mention about how much the investors would get back and what is the estimated legal cost to unravel the structure. With the economic recovery, I hope that the value of the underlying assets would have improved and gave a high rate of return to the investors. We will have to wait and see.
Waste in health care
In health care, doctors and hospitals make more profit by being less efficient, according to this report.
Swiss health care system
This report describes the Swiss health care system, which is highly rated for delivering good outcomes.
Book: Bad experience on financial products
Someone suggested that I compile a book to show the bad experience on financial products. This has to be contributed by many individuals in Singapore.
If you wish to share your story, please write it below. I need you name, telephone and e-mail to contact you for verification, but your personal identity will not be disclosed in the book.
I will also edit your story - so you do not need to worry about your writing. If there is sufficient stories of interest to others, I will publish it in soft copy.
If you wish to share your story, please write it below. I need you name, telephone and e-mail to contact you for verification, but your personal identity will not be disclosed in the book.
I will also edit your story - so you do not need to worry about your writing. If there is sufficient stories of interest to others, I will publish it in soft copy.
Click here to share your personal story.
Talk on solving puzzles
I gave a talk on solving puzzles to 40 people at the Thomson Community Club. It covered Shape Quiz, Sudoku and Intelligence Quiz. The participants enjoyed the talk and bought 60 books of different titles. Many bought the shape quiz pieces to organise competition among their grand children. The books can be bought here.
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