PETALING JAYA: The moratorium on medical insurance premium hikes for those over 60 has come to an end.
While an announcement on the current status of the premium freeze is only expected some time this month, insurance companies are already sending out notices telling policyholders that they will have to pay about 30% more.
M. Sivam, 62, has been told he has to pay RM5,454 this year, about 30% higher than the previous year.
Another policyholder in his 70s was issued a notice by his insurance company that he will have to pay RM6,443 for 2026, up from RM4,930 the previous year.
In December 2024, Bank Negara Malaysia had announced a temporary pause on premium adjustments for policyholders aged 60 years old as a move to curb medical inflation.
The one-year pause has ended.
An insurance agent said there was no fixed quantum for policyholders aged above 60, as premiums are based on individual needs.
She said that, factoring in medical inflation, elderly policyholders should ideally increase their coverage every few years so it can cover their current needs.
“This is due to medical inflation and the need to cover various illnesses,” she said.
“Previously, insurance companies could customise their plans. But now we have to follow Bank Negara’s actuary calculation and procedures,” she added.
Meanwhile, sources privy to the Joint Ministerial Committee on Private Healthcare Costs (JMCPHC) said premiums for elderly policyholders could be regulated.
“Until 2027, the premium hike will still be there,” said the source.
As for the new base product that the government is working on, sources say the product could provide coverage of up to RM100,000 and cover those up to age 85.
Some elderly policyholders are also hoping for the reprieve to continue as they can no longer afford their premiums.
K. Krishnan, who is recovering from a heart bypass surgery, was grateful for last year’s premium freeze.
He said it was a lifeline that gave him some breathing space with his tight monthly budget.
With the reprieve now over, the 61-year-old, himself an insurance manager, fears he cannot pay the bills as he recuperates at a heart hospital in Kuala Lumpur.
Speaking from his hospital bed, Krishnan said many senior policyholders may have to give up their medical coverage if premium increments continue.
“Many can no longer afford it. I have more than 20 clients whose medical insurance had lapsed simply because it was too costly.
“Even I, as an insurance agent, am struggling to pay my RM1,200 monthly premium. I was paying the same sum for my wife until she passed away a few months ago. Many times, I had to borrow money to pay up,” he added.
Krishnan said he had initially approached a government hospital for his surgery as his insurance coverage was inadequate, but was told he may have to wait for two years before being treated.
Retiree B. Francis, 65, said if insurance companies hiked premiums again, he may need to seek employment.
