KUALA LUMPUR: A DAP lawmaker has repeated calls for a social health insurance scheme as a way to reinforce the national healthcare ecosystem.
Dr Kelvin Yii (PH-Bandar Kuching) said based on Employees’ Provident Fund (EPF) allocations and Socso's Employment Insurance System (EIS) contributions, the introduction of social health insurance would see an estimated RM32bil in additional funds generated.
“This is on top of Budget allocations to the Health Ministry by the Federal Government," he told Dewan Rakyat when debating Budget 2024 on Monday (Oct 23).
Using a RM2,000 average income for over 6.2 million workers, Dr Yii said a 0.5% contribution through the EIS would translate into RM5 per person.
“In a year, this will amount to RM780mil, not including employers' contributions. This amount can be used to build two small hospitals.
“For those with a RM4,000 income and 0.25% contribution, it translates into RM10 monthly and over a year, will add up to RM1.56bil,” he said.
On the EPF, Dr Yii said it was allocated RM31.1 bil in 2019.
"When we add both the EPF and EIS amounts together, we get almost RM32bil in total," he said.
He added that the allocations for the Health Ministry this year amounted to RM41bil, and when combined with the additional funds from social health insurance, could see investments across many areas.
“This includes new healthcare equipment, repairing dilapidated facilities, ensuring the welfare of healthcare workers, reducing the brain drain while empowering the digitalisation of the healthcare system and more,” said Dr Yii, who is also a special advisor to the ministry.
He stressed that such a scheme should be done in phases and not involve big cuts from workers’ salaries.
“If we start with 5% of contributions from workers and another 5% from employers, we will get between RM15bil and RM17bil annually.
“This is almost half the allocation for the Health Ministry,” he said.
He also said the scheme could begin with employees of government-linked companies as they already had private insurance.
“We don’t have to reinvent the wheel.
“If it can be implemented well, (and) we see positive changes like shorter waiting times and better medicine at healthcare facilities, more people will want to join,” he said, adding that social health insurance would also provide competition to private insurance providers.
“They may then have to reduce their premiums, which is good for the healthcare ecosystem,” he added.
Acknowledging it may not be a popular move, Dr Yii said introducing such a scheme needed proper communication.
“But as leaders and policymakers, we must think in the long term to build a sustainable country, beyond just five years,” he said.
Dr Yii stressed that such a scheme did not mean privatising the healthcare system.
“It is a model where the government handles the insurance, not the private sector.
“The philosophy is not profit-driven. It has to be done progressively and not shock the market nor burden the people,” he added.
