PSSC: Move will keep premiums down, ensure healthcare service continuity

THE country’s medical insurance and takaful policies need to be reviewed with the introduction of co-payment options which allow treatment costs to be shared between insurers, takaful operators and policyholders.

While this move will keep the cost of premiums down, the co-payment should also be affordable for policyholders, the Parliamentary Special Select Committee on Health said.

These were among six recommendations to the government following an engagement session yesterday.

Of late, there have been rising concerns over premium increases for medical and health insurance and takaful (MHIT) products from next year 2025, with reports projecting increases of 40% to 70% for some policyholders.

Committee chairman Suhaizan Kaiat said the session yesterday was to discuss and gather insights from five key stakeholders on the issue of the rising prices.

“They are the Health Ministry, Bank Negara, Life Insurance Association of Malaysia, Malaysian Takaful Association, and General Insurance Association of Malaysia.”

The meeting came a day after a briefing by Bank Negara chaired by Finance Minister II Datuk Seri Amir Hamzah Azizan.

According to sources, several Pakatan Harapan MPs called for a moratorium on premium increases to allow for a thorough review, citing substantial earnings by insurance companies.

“This engagement focused on improving the pricing structure of medical insurance and takaful, current challenges such as rising treatment costs, the suitability of coverage offered and the effectiveness of current policies,” Suhaizan told a press conference on the sidelines of the Dewan Rakyat sitting yesterday.

From Sept 1, insurance companies and takaful operators had to offer co-payments as an option in all their policies.

“This helps reduce financial pressure and ensures healthcare service continuity, offering policyholders choices that match their financial capacity,” he said.

The other recommendations by the PSSC included urging the government to draw up a comprehensive mechanism to control healthcare prices to prevent undue financial burdens on patients, including continuous monitoring of medication, treatment and procedure costs.

Suhaizan also recommended that the Health Ministry fast-tracks the implementation of Diagnosis Related Groups (DRG) to improve financial management and payment efficiency in the health system.

He also suggested that the National Health Fund be quickly established to provide sustainable financial resources for public healthcare, especially when it involves vulnerable groups.

Lastly, he called on the government to plan gradual price increases for healthcare services to address complex health demands, including hospital capacity expansion and modernising medical infrastructure.

In a separate press conference, the Backbenchers Club urged the government and Bank Negara to conduct thorough scrutiny of the issues facing both public and private health sectors, as well as to explore long-term solutions for healthcare financing.

“There should be a proceeding through the Parliamentary Special Select Committee and the Public Accounts Committee to help identify a resolution,” it said.

https://www.thestar.com.my/news/nation/2024/12/12/co-payments-must-be-affordable