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The Malaysian government is working with key stakeholders to tackle rising healthcare costs through long-term strategies. Finance Minister II, Datuk Seri Amir Hamzah Azizan, said Bank Negara Malaysia (BNM), the Health and Finance Ministries, private hospitals, and Insurers and Takaful Operators (ITO) are collaborating to control medical expenses and keep insurance premiums affordable.
BNM and its partners are focusing on managing medical cost inflation. The National Cost of Living Action Council (Naccol) has introduced measures like spreading premium increases over time, delaying hikes, reinstating lapsed policies, and offering more flexible insurance options.
As of December, insurance providers agreed to cap annual premium hikes at under 10% for three years, benefiting 80% of policyholders. Those facing steep increases (40-70%) can seek assistance, and policyholders who canceled coverage in 2024 due to costs can reinstate their policies.
The financial impact of these measures, estimated at RM2.6 billion over 2 years, will largely be absorbed by insurers. However, Amir Hamzah stressed that rising medical costs remain the root problem.
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To ensure long-term sustainability, the government is prioritising healthcare reforms, including regulating private hospital charges, improving cost efficiency, and addressing inflation in medical expenses.
“It is important to emphasise that these interim measures can only provide temporary relief for policyholders. However, the core issue remains the rising inflation of medical costs. The continuous increase in medical cost inflation is the primary factor driving the rise in claims for MHIT premiums,” Amir Hamzah said in Dewan Rakyat today, as quoted by NST.
“The government, through the Health Ministry, is prioritising comprehensive healthcare reforms to address medical cost inflation and private hospital charges to curb the rising costs in the healthcare sector”, Amir Hamzah further explained.
(Source: NST)