KUALA LUMPUR – Bank Negara Malaysia has announced a new “base plan” for medical insurance to ensure affordable healthcare coverage for Malaysians while addressing concerns over increasing premiums.
During a closed-door briefing on January 19, Bank Negara highlighted that the government-backed initiative is designed to encourage those who can afford private healthcare to utilise private hospitals, thus alleviating pressure on public facilities, The Star Online reported.
“Government hospitals will continue to serve as the backbone of the public healthcare system,” Bank Negara emphasised. The new framework will cover approximately 99% of hospitalisation costs, providing broad protection for Malaysians.
The plan offers guaranteed renewal up to age 85, with gradual premium adjustments instead of sudden hikes, aiming to reduce the financial strain on policyholders.
Developed by the Joint Ministerial Committee on Private Healthcare Costs (JMCPHC), a collaboration between the Health and Finance Ministries, full details of the plan will be officially released in a Health Ministry press conference scheduled for January 22.
The Malaysian Health Insurance/Takaful (MHIT) plan is structured to cover significant hospitalisation bills based on shared-room costs, with additional coverage for pre- and post-hospitalisation care such as GP consultations, physiotherapy, and home nursing services.
Annual limits are set to cover 99% of common medical conditions, and there is no lifetime limit on coverage.
In addition, Bank Negara announced immediate reforms to simplify the industry, such as streamlining the Guarantee Letter (GL) process and establishing a medical professional hotline at Third-Party Administrators (TPAs) to resolve disputes between doctors and insurers.
A “health calculator” is also being developed to help consumers plan for future premiums and medical inflation.
The government’s initiative aims to provide affordable and sustainable protection against major healthcare expenses while addressing the rising costs of private healthcare.
The MHIT plan is designed as a hospitalisation policy, covering substantial bills based on shared-room rates, with expanded options for consultations and follow-up care.
Health Minister Dzulkefly Ahmad, in a joint press conference with Finance Minister II Amir Hamzah Azizan and Bank Negara Governor Abdul Rasheed Ghaffour, confirmed that high-cost treatments, including inpatient and outpatient cancer care, will be covered based on cost-effectiveness assessments.
“The base MHIT plan will standardise benefits and premiums, enabling broader risk pooling and portability across insurers and takaful operators (ITOs), with a consistent approach to underwriting and claims assessments,” Dzulkefly added.
The plan will serve as a market benchmark, encouraging ITOs to improve their offerings in alignment with the principles of the base plan. The scheme will be piloted in the second half of the year, with a full launch expected in the first quarter of 2027. – January 22, 2026