KUALA LUMPUR – Healthcare experts have urged the government to step in and mitigate the impact of an expected 40% to 70% increase in medical insurance premiums next year to prevent hardship for the public.
Chairman of Patients for Patients Safety Malaysia, Manvir Victor, described the proposed hike as baseless, warning that it could prompt many to terminate their insurance policies.
“This situation has the potential to burden an already congested and underfunded public healthcare system,” he said, adding that such a development could severely affect the system as Malaysia progresses towards becoming a developed nation.
He also called for greater transparency from insurance companies regarding the rationale behind the premium increases.
“Insurance companies should be transparent and disclose the information used to justify the premium hike. Additionally, they must reveal their profits, as this business relies heavily on the trust of their customers,” he told Scoop.
Manvir was responding to reports indicating that the premium increases are driven by rising medical costs in private hospitals.
Meanwhile, President of the Association of Private Hospitals Malaysia (APHM), Datuk Dr Kuljit Singh, said any increase must be reasonable for all stakeholders, particularly patients and policyholders.
“A significant rise will affect demand and admission rates at both government and private hospitals,” he said in a statement.
He noted, however, that if the premium adjustments correspond to improved services, they could be justified for those in need of care.
“If the hike is excessive, it will undoubtedly have short- and medium-term effects, potentially reducing demand for private hospitals and shifting patients to public healthcare facilities,” he said.
Dr Kuljit added that APHM is open to collaborating with stakeholders to explore ways to reduce costs, ease regulatory burdens, and address the rapidly increasing costs of medico-legal healthcare – November 27, 2024