The recent Public Accounts Committee (PAC) hearing on private healthcare costs has highlighted serious concerns about rising health insurance premiums and escalating charges at private hospitals. Testimonies from over 50 speakers, including retirees, insurance specialists, and affected citizens, reveal the urgent need for reform in both the insurance and healthcare sectors to ensure fair and affordable access to medical services.
A key issue raised was the disparity in costs between insured and self-paying patients, with many reporting that those without insurance were charged higher amounts for identical treatments. This practice must be addressed. The government's proposal to absorb 10% of insurance premiums does not solve the problem but may encourage private hospitals to profiteer further.
A simple solution is to ensure that treatment costs are the same, whether covered by insurance or paid directly by the patient. Strict regulations requiring transparency in pricing should be implemented to prevent patients from being unfairly penalised based on their insurance status.
Additionally, private hospitals must provide clear, upfront estimates for medical treatments, including detailed breakdowns of all associated costs, such as charges for consumables (e.g., gauze, needles, and vitamins). Hidden costs should not surprise patients once they have committed to surgery or treatment.
The government’s proposal to absorb 10% of private hospital charges may inadvertently encourage hospitals to raise their prices, knowing that a portion will be covered. Instead, a ceiling cap on treatment costs should be introduced to prevent price-gouging in private healthcare.
There is also growing support for a more transparent pricing system, similar to a "coffee shop" menu for medical procedures, allowing patients to make informed decisions. To protect against exploitation, a regulatory body should be established to oversee both private hospital charges and insurance premiums, ensuring they remain reasonable and equitable.
Given these concerns, it is essential that the government prioritises health system reforms and implements policies that provide financial relief for individuals while curbing escalating healthcare costs. Reforming the health insurance and private hospital landscape is a matter of both economic fairness and social justice. The current situation is forcing retirees, families, and individuals to struggle with the cost of necessary care, and many may soon turn to our already overstretched public hospitals, further exacerbating the crisis.
A balanced approach is needed to ensure affordability, transparency, and accountability across the healthcare system. Only through meaningful reform can we ensure that all Malaysians, regardless of age or income, have access to quality healthcare without facing financial hardship.
We look forward to concrete actions based on the PAC's recommendations and urge the government to prioritise health system reforms as a critical national issue.
Dato’ Dr Mah Hang Soon
MCA Deputy President
