Moving with the times: Ahmad Zahid (left) and Amir Hamzah announced plans for a basic medical insurance scheme for Malaysians to address rising medical costs. — Bernama
KUALA LUMPUR: Bank Negara, the Health Ministry and the Employees Provident Fund (EPF) are developing basic health insurance and takaful products for Malaysians that highlight the concept of value-based healthcare.
The move comes as the government aims to reform the national health sector over a three-year period between 2024 and 2026.
“This initiative is part of the national health sector reform effort that needs to be implemented immediately to ensure access to more sustainable medical treatment,” Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said.
The matter was among those discussed at the National Action Council on Cost of Living (NACCOL) executive committee meeting yesterday that was attended by Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali and his deputy Dr Fuziah Salleh, senior ministry officials, state government representatives, industry and non-governmental organisations, Bernama reported.
Ahmad Zahid said discussions were held on the increase in medical cost inflation, which has caused a continuous increase in health insurance and takaful claims.
To address the issue, several measures have been identified to curb the increase in premiums, including the distribution of premium adjustment rates, deferral of premium adjustments, reactivation and provision of alternative products.
Finance Minister II Datuk Seri Amir Hamzah Azizan separately said the central bank had announced temporary measures to mitigate the impact of rising medical and health insurance and takaful (MHIT) premiums and contributions on policyholders.
Under these measures, 80% of policyholders are expected to see annual premium or contribution adjustments of less than 10% due to medical claims inflation.
“A significant portion of the costs associated with these interim measures is borne by ITOs using their accumulated profits and reserves.
“Based on initial estimates, the impact on industry profits from these measures is expected to be RM2.6bil over the next two years,” he said when winding up the debate on the Royal Address in the Dewan Negara yesterday.
According to Amir Hamzah, the continuous rise in medical cost inflation is the primary driver of increasing MHIT claims.
“It is important to emphasise that these interim measures can only provide temporary relief for policyholders. The core issue remains the rising inflation of medical costs,” he said.
Therefore, he emphasised that the government, through the MOH, is prioritising comprehensive healthcare reforms to address medical cost inflation and private hospital charges.
He also said that these efforts will include putting in place a payment model based on the Diagnostic Related Group (DRG), changing how MHIT products are made, making it easier for people to get affordable health care, and putting in place electronic health records.
Ahmad Zahid said the NACCOL executive committee meeting also reviewed the Social Security Organisation’s initiative to strengthen social protection and job matching to reduce the income gap among the people.
Among the initiatives that will be improved are more efficient job matching, incentives for employers to hire workers from underserved groups, and stronger social protection to provide better economic security for workers and their families.
“The government remains committed to implementing a variety of initiatives to address the cost of living challenges, including income enhancement programmes, low-cost sales, and cash assistance.
“These measures are part of ongoing efforts to ensure that the well-being of the people continues to be guaranteed in the face of current economic challenges,” he said.
