KUALA LUMPUR: The government will implement structural reforms to address the issue of rising medical inflation and enhance transparency in the healthcare expenditure system, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
He said this includes introducing an affordable basic medical and health insurance/takaful (MHIT) product by the end of next year.
"This gives us room until the end of next year to introduce the basic MHIT product, which will broaden the existing market offerings and ensure a better product base," he said when winding up the debate on the Supply Bill 2026 (Budget 2026) at the policy stage in the Dewan Rakyat today.
Amir Hamzah said a committee co-chaired by the Ministry of Health (MoH) and the Ministry of Finance (MoF) has been established to implement the reforms.
The committee, he said, involves all stakeholders, including the insurance industry, Bank Negara Malaysia (BNM), the Malaysian Medical Association (MMA), and general practitioners, to ensure a holistic approach is taken.
"The government wants to implement meaningful structural reforms so that we can control costs in the future through a more comprehensive approach involving all parties, ensuring that solutions are sustainable, and not merely patchwork measures," he said.
According to Amir Hamzah, the issue of rising medical inflation is complex and requires the cooperation of all stakeholders, including private hospitals and consumers.
He said among the key reforms agreed upon is the implementation of a more results-based Diagnosis-Related Groups (DRG) system and Electronic Medical Records (EMR) to improve transparency and contain rising costs.
In line with the Revamp, Enhance, Strengthen, Expand and Transform (RESET) strategy, efforts are being intensified to develop value-based basic health protection products, expected to be offered by 2027.
"This is to provide affordable protection with more stable premiums," he said.
Amir Hamzah noted that the government has also agreed to expand existing insurance coverage to ensure more people have access to healthcare protection.
"The base insurance cover will be released at the end of next year, and we will announce it then. We will also look at where the financing for the base cover will come from - perhaps we can consider using the Employees Provident Fund (EPF),” he said.
He explained that long-term reforms are crucial to address the root causes of medical inflation, including the cost structures of private hospitals, inconsistent clinical practices, and limited transparency in medical charges.
Amir Hamzah added that the government's main goal is to ensure that the people enjoy quality, sustainable, and affordable healthcare protection. - Bernama
