PETALING JAYA: A staggered increase in annual medical insurance premiums will achieve little unless the government addresses the underlying rise in private healthcare costs, says the Federation of Malaysian Consumers Associations (Fomca).
Fomca secretary-general T. Saravanan warned that unchecked hospital charges are likely driving higher medical and insurance costs.
He noted that while doctors’ professional fees face some oversight, other charges, including room rates, consumables and diagnostic procedures, remain largely unregulated.
“This has allowed costs to rise year after year, inflating insurance claims and pushing premiums higher for consumers.
“Strong regulation, immediate intervention and structural reform are needed to keep medical care and insurance accessible and affordable,” he said.
Saravanan called on the Health Ministry and Bank Negara Malaysia (BNM) to conduct consistent monitoring of billing practices.
“This can detect unjustified hikes, curb overcharging and create a more predictable claims environment.
“While it won’t eliminate medical inflation entirely, it can help moderate its growth and restore consumer trust,” he added.
Saravanan also suggested that the Domestic Trade and Cost of Living Ministry, through the Malaysia Competition Commission, step in if price-fixing is reported.
Several insurers have already notified policyholders of premium revisions starting next year, with some reporting increases of around 9.9%.
These adjustments follow BNM’s directive to spread hikes over a minimum of three years to ease the financial impact.
The Life Insurance Association of Malaysia confirmed that all insurers must comply with BNM’s measures to cap premium increases from 2024 through 2026.
Its chief executive officer Mark O’Dell said: “There is no blanket industry-wide increase in health insurance premiums.
“Any adjustments vary by insurer and product, influenced by factors such as claims experience, medical cost trends, benefit designs and risk profiles.”
He said insurers remain conscious of the impact of healthcare costs on consumers.
“Where premium revisions are necessary, they are subject to regulatory oversight to ensure they are appropriate, transparent and in policyholders’ interests.
“Importantly, not all plans or policyholders will experience the same level of adjustment, and in some cases, there may be no increase at all,” he added.
