KUALA LUMPUR: The Life Insurance Association of Malaysia (LIAM) said the government's RM200 first-year premium subsidy under the MediAsas plan for eligible small and medium enterprises (SMEs) will help expand access to basic medical protection among workers.
LIAM said in a statement today that the plan is expected to offer affordable premiums, with hospital payments based on diagnosis and treatment to strengthen cost control and improve cost predictability.
"The plan would support efforts to make medical protection more accessible and sustainable in the long term, amid rising healthcare costs.
"It could help ease the financial burden on smaller businesses while encouraging wider access to medical protection among their employees,” it said, in conjunction with Prime Minister Datuk Seri Anwar Ibrahim's MediAsas announcement during the tabling of Budget 2027 in the Dewan Rakyat today.
Anwar, who is also Finance Minister, said the government will launch the MediAsas plan in January 2027 with affordable premiums.
Under the 2027 Budget, the government will subsidise the first-year premium by RM200 per employee for eligible SMEs, capped at 50 employees per company.
The initiative is expected to benefit up to 200,000 workers.
LIAM chief executive officer Mark O’Dell said access to medical protection is an important part of financial preparedness.
"Initiatives such as MediAsas can help more Malaysians take their first step towards managing the financial risks associated with hospitalisation and medical treatment,” he said.
The plan will offer standalone medical insurance and takaful products under two options: MediAsas Teras, a standard plan, and MediAsas Fleksi, a standard-plus plan. Coverage will be available to individuals up to 85-years-old.
It is aimed at individuals without medical insurance or takaful to cover major medical expenses, as well as those seeking a more affordable alternative amid rising medical and health insurance or takaful premiums as they age.
LIAM said it is looking forward to working with Bank Negara Malaysia (BNM), relevant government agencies and participating insurers to support MediAsas’ introduction and raise public awareness of the plan.
"The plan can serve as an important starting point for individuals and families to consider their broader healthcare financing and protection needs,” said LIAM.
Meanwhile, other measures announced by Anwar for MediAsas include basing hospital charges on diagnosis and treatment categories to make medical costs more predictable and easier to manage.
Eligible Employees Provident Fund (EPF) members below 55 will also be allowed to use their Akaun Sejahtera savings to pay MediAsas premiums. - Bernama
