Tackling rising insurance premiums: Lessons from global healthcare systems

IN Malaysia, rising medical insurance premiums have become a pressing issue, with increases ranging between 40% and 70% projected for 2025. This surge is driven by a combination of factors, including escalating private healthcare costs, moral hazard, overutilisation of medical services, and unchecked hospital charges.

Many insured patients and private hospitals contribute to this dynamic: Patients often choose more expensive treatments because they are covered by insurance, while hospitals may inflate prices, knowing insurers will bear the cost.