‘So shocked by increase’: No easy solutions as Malaysians grapple with sharp spike in medical insurance costs

GREATER TRANSPARENCY NEEDED, CONSUMER GROUP SAYS

The complicated problem is being worked out while efforts are being made.

Insurance companies have been required to offer customers the option to purchase heath insurance items with a co-payment have since September of last year.

According to Bank Negara Malaysia, prices for items with co-payment features range from 19 % to 68 % lower than those for items without these features.

Researchers have argued for greater accountability in the calculation of insurance premiums as well as for the establishment of an independent body to oversee the private medical industry.

An independent committee to review charges and price increases in personal care was suggested by Azrul of the Galen Center. &nbsp,

He suggested that the payment may have authority related to Malaysia’s Competition Commission and get over takaful and health insurance legislation from Bank Negara Malaysia.

Sim Tze Tzin, a member of the Bayan Baru legislator, has stated to CNA that the Parliament’s Public Accounts Committee may be hearing testimony next month. Various stakeholders will be asked to comment on the story’s side. &nbsp,

” It is ( an ) entire ecosystem and on the receiving end are the patients and policyholders”, he said. &nbsp, While carriers and private institutions are profit-driven, their income should not be “excessive”.

In 2023, carriers Prudential, Fantastic Eastern, and AIA made net income of RM963 million, RM1.123 billion, and RM1.41 billion respectively.

When asked about carriers ‘ profits, MarkO’Dell, the CEO of the Life Insurance Association of Malaysia, claimed the profits came from the business’s another branches. &nbsp,

” A business could very easily be making 500 million dinars a year,” the statement read. But they’re losing wealth on their health organization. And therefore, he told CNA, you are asking the owners to give or receive subsidies from the profits of different lines of business by not raising the premium.

Sim noted in a presentation to parliamentarians last year that one aspect that needs to be looked into is the disparity in charges between those who file claims with insurance and those who pay out-of-pocket.