PETALING JAYA: The Employees Provident Fund’s (EPF) i-Lindung facility, which allows members to withdraw their savings to buy life and critical illness insurance, is set to be expanded.
Contributors may soon be able to make withdrawals from Akaun Sejahtera (Akaun 2) to also purchase coverage under the Base Medical and Health Insurance/Takaful (MHIT) plan.
The Finance Ministry is now studying a proposal for such withdrawals, the ministry said in a parliamentary written response to a question from Senator Datuk Rosni Sohar in the Dewan Negara.
“This approach ensures a balance between the need for health protection and the security of retirement savings,” it said.
Rosni had asked the ministry about the proposal to allow the use of EPF savings to purchase the Base MHIT plan.
The ministry stressed that the savings in the EPF’s Retirement Account (Account 1) will not be affected at all.
“Savings in the Akaun Sejahtera are indeed allocated to assist members in meeting medium-term needs such as medical withdrawals, education, housing and other permitted purposes, subject to the terms and conditions determined.
“The government will continue to implement reforms in phases, with the cooperation of all parties, to build a stronger and more sustainable healthcare system,” it said.
It also added that it will continue to monitor the implementation of this plan to ensure that the interests of the people are always protected.
The government, it added, was of the view that the plan, with stable and predictable premiums, will be an attractive option for Malaysians who do not yet have coverage or who are seeking more affordable protection.
“This is expected to help increase health protection and reduce the financial burden arising from high treatment costs,” it said.
The MHIT basic plan has several features that ensure premiums are more stable and predictable, said the Finance Ministry.
“The benefit packages and premium rates are standardised across all insurance and takaful operators (ITOs), enabling broader risk pooling and improving premium stability,” it said.
The plan seeks to better control healthcare costs through co-payments, a shift to the Diagnosis-Related Group payment system, and negotiations with healthcare providers, said the ministry.
