save malaysia!
Time for Bank Negara to protect the life and health of 31 million Malaysians instead of insurers’ profit and wealth — Lim Guan Eng
savemalaysia
Publish date: Wed, 11 Dec 2024, 08:35 PM
Time for Bank Negara to protect the life and health of 31 million Malaysians instead of insurers’ profit and wealth — Lim Guan Eng
The time has come for Bank Negara to demonstrate its social empathy, public responsibility and ethical compassion. In making its decision by the end of this month, Bank Negara should choose to protect the life and health of 31 million Malaysians instead of protecting the profits and wealth of 16 life insurance and takaful companies, by categorically rejecting the excessive 40-70 per cent hike in medical insurance premiums next year.
Bank Negara had disclosed that life insurance companies have to hike up medical insurance premiums next year to counteract the gross increase in medical costs of 15 per cent in Malaysia for 2025 as compared to the corresponding 10 per cent global medical cost increase and 11.1 per cent increase for the Asia Pacific region. This failure at cost containment by the private health and life insurance industry in Malaysia raises 3 questions of public accountability for regulators in the Health Ministry and Bank Negara.
Three questions of public accountability
One, why should medical insurance premiums be hiked up by 40-70 per cent next year, which is much higher than the 15 per cent increase in gross medical costs? Two, what are the underlying reasons that have allowed gross medical costs to run out of control and increase at a higher rate as compared to our regional neighbours and globally? Three, why should this failure of cost containment of medical costs be borne solely by policyholders and the public?
There are valid concerns at the regulatory failure of Bank Negara in preventing abuses in imposing medical costs by both the private hospitals and the life insurance industry. A cost comparison study from 2021-2023 highlights that a dengue patient using a guarantee letter(GL) costs RM 4,978, which is four times higher than the cost of RM 1,288 for the same dengue patient that pays first and claims later. Similarly Bank Negara concedes that a pneumonia patient using a GL will pay RM 6,859, which is 3 times higher than the RM 2,654 paid first by the patient and claiming later. Why are the abuses allowed to recur by the authorities?
Do our salaries go up by 40-70 per cent in one year?
Any repricing adjustments of medical insurance premiums should be implemented gradually in a sustainable and reasonable quantum, not in an excessive and massive 40-70 per cent hike as is proposed for next year. There is no evident urgency for life insurance companies to have such a massive and excessive 40-70 per cent hike in medical insurance premiums when they are recording healthy profit growth.
According to Bank Negara, overall profitability of life insurance and family takaful funds was higher in the first half of 2024 at RM8.4 billion, more than double their profitability in the second half of 2023 at RM3.2 billion. Have life insurance companies not earned enough? Why should the life insurance companies be allowed to earn more profits from income off the backs of hard-working and hard-pressed Malaysians?
When workers’ salaries never hike up by 40-70 per cent in one year, there is no clear and defining moral justification for life insurance companies to hike up medical insurance premiums by 40-70 per cent next year.
* Lim Guan Eng is Bagan MP and national DAP chairman.
https://www.malaymail.com/news/what-you-think/2024/12/11/time-for-bank-negara-to-protect-the-life-and-health-of-31-million-malaysians-instead-of-insurers-profit-and-wealth-lim-guan-eng/159538
More articles on save malaysia!
Ringgit closes out 2024 as top performer among major Asian currencies
Created by savemalaysia | Dec 31, 2024
2025: Sarawak to move forward with renewed enthusiasm — Abang Jo
Created by savemalaysia | Dec 31, 2024
EC names chief secretary to govt Shamsul Azri as new chairman
Created by savemalaysia | Dec 31, 2024
Federal government prioritises Kelantan development, ECRL completion by 2027
Created by savemalaysia | Dec 31, 2024
Discussions
1 person likes this. Showing 43 of 43 comments
Insurance companies are taking advantage under PH govt to squeeze old and rich people's economically, either pay more or get the hell out from the system. The capitalists vultures need to be fed more and more. Who are the private owners of the private hospitals? The elite circle of people in Malaysia including the royal family?
1 month ago
Those business entities were set up by pirates long time ago.
The legacy continues albeit government changes.
However, one party manages to stick to government like leech since independence to grip on hegemony.
1 month ago
Actually I agree...lge has make enough mistakes already. O ly good thing is lge has been pushed out
1 month ago
Both private hospital and insurance work in cohoot rob poor citizens. Nobita scored good point thus time. Shame on all zzzz mps
1 month ago
LGE say should punish hospital let them made huge loss. Remember when LGE is FM, he don't let PLC make money, Bursa drop from 1800 to 1500. I think PMx better than him as FM.
1 month ago
WE NEED to SPEAK-UP ....those suckers pvt hospitals, the insured and insurance companies are to be blamed. Nowadays, the insured can pakat with doctors to arrange with all sorts of examinations
1 month ago
all sorts of medical examination (beyond necessities). Remember, doctors also have KPIs to be achieved. So, those healthy people have been unfairly treated....keep on paying have to pay their share of "medicals claims"
1 month ago
Even GP also asked, "do you have insurance?". If yes/under medical card, the GP can immediately charged more (add more "unnecessary" medicines, lozenges, creams, etc lah) than the usual RM70 per consultation.
1 month ago
Basically insurance companies has two main sources of income:
1. Premiums (insurance premium minus claims.)
2. Investments.
When claims are high, insurance companies will tend to increase premiums to offset higher claims.
It is weird that why LGE put the blame on insurance companies only but exclude healthcare providers.
1 month ago
It is weird that why LGE put the blame on insurance companies only but exclude healthcare providers.
======
LGE playing politics not facts
1 month ago
All of you barking up the wrong tree.
You as consumer have all the blooming right to reject private hospital.
Don't give me typical Chinaman excuse, "Like "aiyo, how to get care if sick"?"
Insurance money is pooled and amounts to hundreds of million if not billion.
Of course thieves have set eye on that and itch to grab some n every possible ways with backing.
1 month ago
Finance Ministry oversees matters concerning, well, finance and that includes insurance
1 month ago
America is very rich country but 20% of GDP goes to health care and no results to show for it.
1 month ago
Health Ministry is reduced to caring for health matters only just like toothless Labour Ministry where they only operate like permit issuance. Control is with top dogs elsewhere.
Some Ministries exist for name sake only, especially those headed by non Bumi and deputised by a Bumi. Either way straight jacket but blame goes to the Minister. Dilemma.
1 month ago
Private hospital is very greedy if u have insurance coverage for payment。E.g. Cataract surgery if personal cash pay ment =RM2,000 per one eye cataract surgery but if you pay using insurance coverage the charges are RM6,000。 So Kanasai this private hospital. That's why insurance company increases premiums for medical insurance card. Can't blame insurance company laa。
1 month ago
It’s not only solely the insurance raised premiums…
Private hospitals were also the culprits in raising medical bills and forced insurance companies to raise premiums.
1 month ago
Private hospital is very greedy if u have insurance coverage for payment。E.g. Cataract surgery if personal cash pay ment =RM2,000 per one eye cataract surgery but if you pay using insurance coverage the charges are RM6,000。 So Kanasai this private hospital. That's why insurance company increases premiums for medical insurance card. Can't blame insurance company laa。
====
I have personal experience
1 month ago
with insurance, customers choose the most expensive option, hospitals choose the most expensive option, everybody choose wastage and what is most expensive.
1 month ago
Doctors profession lose respect dignity unethically profit from poor sick. Karma will.hit.doctored doctors one day
1 month ago
Most private hospitals are under Government Linked Companies diversification.
So who is the behind the scene scammer?
1 month ago
IHH Healthcare - Largest shareholders are Khazanah Nasional and EPF.
KPJ - Largest shareholder Johor Corporation.
What to expect?
1 month ago
No wonder insurance companies are the first to be blamed. True or not true?
1 month ago
GLC.shoukd able to.bring.down. cost reduce citizens burden.lest.pls close down.all.glc.settle.all debts
1 month ago
Posted by StarOfTheBull > Dec 13, 2024 12:48 PM | Report Abuse
IHH Healthcare - Largest shareholders are Khazanah Nasional and EPF.
KPJ - Largest shareholder Johor Corporation.
What to expect?
？
You can blame GLC for increasing medical bills, so blame the insurance company laa.
GLC owned by Gov。How Gov will blame GLC?
1 month ago
https://www.freemalaysiatoday.com/category/opinion/2024/12/12/private-healthcare-insurance-premiums-a-disaster-waiting-to-happen/
These are the solutions for the msia healthcare
1 month ago
what happen to national medical insurance? 2 years Mana Ni already no result till now
1 month ago
he likes to fight for everything be it small and the smallest issues
he has been tarnishing Chinese Society images
he is akin Akmal in Chinese version when Malay Society view him
1 month ago
he should let the young DAP leaders handle whatsoever issues related to party and country
1 month ago
Post a Comment
Featured Posts
Introducing MY's First IPO Fund for Sophisticated Investors!
New Update. Discover investment communities that resonate with your ideas
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
Apps
Top Articles
1
Good Articles to Share
2
Good Articles to Share
3
Good Articles to Share
Thousands help at huge Los Angeles wildfire donation center | REUTERS
4
Good Articles to Share
5
Good Articles to Share
6
Good Articles to Share
Californians can't find hotels, let alone rentals, realtor Jason Oppenheim says
7
MQ Market Updates
8
Good Articles to Share
Earnings expectations and sectors that could see 'decent growth'
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
MQ Trading Signals
Stock
Time
Signal
Duration
Stock
Time
Signal
Duration
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
gjcgoh
YB LGE, the planned medical insurance increase by 40-70% next year 2025 is a fallacy. The hefty increase in medical insurance has already been implemented in 2023. In Nov. 2023, my wife's my medical insurance policy increased from yearly RM 4,160.60 to RM 7, 257.00 an increase of 42.7%. Also in Nov. 2023, my medical insurance increased from yearly RM 5,936.60 to RM 10,710.00, an increase of 44.6%. We are in our early 70's, and cannot afford such hefty medical insurance increase. So we opted for a co-funding scheme with lower yearly payment and less medical benefits.
1 month ago