Meanwhile, the proposed diagnosis-related group (DRG) pricing system — which is intended to provide greater pricing transparency and prevent overcharging — that was initially slated for rollout in 2Q2025 was delayed to 2026 and again, to 2027. And then, there is the proposed voluntary basic Medical and Health Insurance and Takaful (MHIT) product, that could be paid for from our Employees Provident Fund (EPF) savings. This is totally not helpful, as it does not address the underlying issue of escalating healthcare costs and, worse, will only eat into our already low savings and raise the risks of Malaysians retiring in poverty.
Remember the public outrage when insurance companies hiked premiums by between 40% and 70% in late 2024? It sparked a nationwide debate of why and who is to blame and, more importantly, suggestions on what can be done to minimise healthcare costs escalation that will result in similar steep hikes in the future. We too have written extensively on this subject, over several articles. Affordable healthcare is a critical — and increasingly alarming — issue for Malaysia’s ageing population, and especially for the middle-income households.
Unfortunately, nothing much has changed, and the issue appears to have been swept under the carpet. Yes, Bank Negara Malaysia has mandated that the full cost of the 2024 insurance premium hike be spread out over three years (2024-2026). That effectively means that policyholders are still required to foot the entire bill, except now in “instalments”. And yes, insurers are required to offer at least one product with co-payment feature (lower premiums) — helpful but not effective. Most policies sold continue to offer comprehensive coverage.
