PETALING JAYA: The introduction of the Base Medical and Health Insurance/Takaful (MHIT) plan by the government will actually be able to correct market distortions and reform the insurance industry, says Sim Tze Tzin.
In a post on his Facebook on Saturday (Jan 24), the Bayan Baru MP commended the political will of the government in restoring public confidence by listening to the complaints.
“Not all governments have the commitment and courage to reform complex issues and the insurance industry that involves giant companies, most of which are from foreign countries,” he said.
Sim cited an incident in which a chief executive officer of an insurance company in the United States was shot dead following outrage over the industry’s failure to control price increases and protect patients who bought insurance.
He said the increase in insurance premiums and private hospital charges since September 2024 is a problem that affects all groups, especially workers and private companies that buy insurance for their employees.
As a result, many have stopped their policies and as a result burden government hospitals.
“To recall, in 2024, people were suddenly pressured by an increase in insurance premium prices reaching 78%. I took note because I believe the increase in insurance costs is a burden on the people like the cost of living.
“Even though I was an ordinary MP (at that time) I decided to do something. I studied the issue diligently, met with almost all industry players and launched a campaign to fight for this issue.
“I am very grateful and proud to have played a small role in raising awareness of this issue among the people,” he said.
He thanked all government officials who were patient and willing to accommodate his “request” while fighting for this issue.
Sim also apologised for any mistakes made in championing the issue.
Additionally, he expressed the highest congratulations to Prime Minister Datuk Seri Anwar Ibrahim, Health Minister Datuk Seri Dzulkefly Ahmad, Finance Minister II Datuk Seri Amir Hamzah Azizan, Bank Negara governor Datuk Seri Abdul Rasheed Ghaffour and all parties involved for submitting the Base MHIT Plan, which is a key initiative under the Reset Strategy.
Reset is a whole-of-nation effort to advance reforms aimed at addressing the root causes of medical inflation by emphasisng value-based healthcare, focusing on overall patient outcomes, optimising cost-effective healthcare services and enhancing access to quality care.
According to the MHIT White Paper released on Jan 22, there are two plans, namely the Standard Plan and the lower-cost Standard Plus Plan.
The monthly premiums for the Standard Plan for those aged between 31 and 35 years old range from RM80 to RM120, and Standard Plus at RM50 to RM70.
However, the RM50 for the Standard Plus Plan is only possible with deductibles.
Those aged 61 to 65 will pay RM280 to RM350 for the Standard Plan, while for the Standard Plus Plan, they will be paying RM220 to RM280.
Those aged above 75 will be paying RM500 to RM780 for the Standard Plan, while the Standard Plus Plan will cost them RM400 to RM660.
