PETALING JAYA: Insurance companies have presented several recommendations to address the rising costs of healthcare as well as insurance premiums or Takaful contributions.
In a joint statement, insurers represented by Life Insurance Association of Malaysia (LIAM), the Malaysian Takaful Association (MTA) and Persatuan Insurans Am Malaysia (PIAM), said talks had been held with the Public Accounts Committee (PAC) in Parliament on Feb 26 on sustainable healthcare financing and strategies to contains costs.
"The industry recognises the efforts by the PAC to address escalating medical inflation and rising healthcare costs in the country and is looking forward to the "whole-of-nation" approach within the next few years.
"The insurance and takaful industry has introduced interim measures to support policyholders affected by the premium repricing.
"These measures aim to ease the financial strain while ensuring continued access to medical and health insurance and takaful (MHIT).
"The interim measures include spreading out premium or contribution increases over three years (until 2026), capping annual hikes below 10% for most policy holders or certificate holders (about 80% of holders), and offering a one-year premium freeze for policyholders or certificate holders aged 60 and above on minimum medical and health insurance or takaful (MHIT) plans.
"Additionally, policy holders or certificate holders whose policies or certificates lapsed in 2024 due to repricing can reinstate coverage without new underwriting, while insurers and takaful operators (ITOs) will introduce alternative and more affordable MHIT products by 2025," said the companies in the statement on Friday.
They added that the industry has collectively proposed key recommendations, aimed at promoting affordability, transparency and sustainability within Malaysia’s healthcare, insurance and the takaful ecosystem.
Among the key proposals were implementing diagnostic-related grouping (DRG) pricing to enhance transparency in healthcare services charges and billings, working with Bank Negara Malaysia to develop basic sustainable long-term insurance and takaful products, and adopting greater transparency by publishing the average costs of common procedures or treatment across private hospitals and annual medical costs inflation rates to empower consumers with greater financial awareness.
It added that the establishment of an industry-wide claims database will improve claims analyses and help mitigate abuse, while co-payment for MHIT products, a key long-term solution, would help policy holders or certificate holders manage costs by encouraging shared responsibility in healthcare expenses.
They also proposed regulating pharmaceutical costs and called for private hospitals to set up cost containment units and to freeze increases during periods when insurers and takaful operators are required to cap premium hikes.
Other proposals include tax exemption on group insurance from 8% SST, appointment of an independent consultant to conduct a detailed study and analyse stakeholder actions, as well as to encourage and incentivise healthier lifestyles through no claim bonuses.
Nevertheless, LIAM, MTA and PIAM expressed their commitment to working closely with Bank Negara, Health Ministry, Private Hospitals Association of Malaysia (APHM), and other key stakeholders to develop long term solutions that balance affordability, quality and accessibility in Malaysia's healthcare landscape.
