Health is wealth: Patients waiting at Hospital Kuala Lumpur in this file photo. — ART CHEN/The Star
PETALING JAYA: Rising private medical insurance premiums are leaving policyholders outraged.
They are now forced to choose between two equally bitter pills: gritting their teeth and continuing with their coverage, or giving up their policies altogether.
Facebook user Julian Chong said his wife had to cancel her policy as the monthly premium had increased from RM300 to RM700.
“The policy that was said to be fixed to the premium age of 80+ increased by 55%. The insurance company issued a letter saying that the overall average claims by patients had increased, along with hospital bills,” he said.
Chong accused insurance companies of being “relentless” in seeking to increase their profits.
“Bonuses and dividends to shareholders have increased,” he posted on Bayan Baru MP Sim Tze Tzin’s page, which has been highlighting the controversy surrounding the expected increase in medical insurance premiums.
Last week, Sim said MPs had received dozens of complaints about rising health insurance premiums.
For executive Nurul Basha, 31, who has three children, not having insurance is not an option as her children are still young.
“I have three children aged between six and one and they do get sick every now and then.
“Having a medical card is essential because I cannot afford to pay for hospital charges on my own as they are getting expensive.
“I am currently paying RM300 for my girls and RM225 for my baby.
“As for now, there has been no update from my insurance agent or a letter, so we will have to wait and see.
“If the hike is not too much, we will still continue to pay or ask the agent for less coverage,” she added.
On people not being able to pay their monthly premiums, Nurul said it is likely to happen among those who do not receive any salary increments or have additional expenses.
Assistant marketing manager April Wong, 32, from Kuala Lumpur, said if the price hike only applies to new policies and plans, people might not drop off as easily since the old policies would maintain the same premiums and coverage.
“While price hikes are not new, I disagree with the sudden increase in policy premiums.
“Wasn’t this anticipated when the policy was sold to me? I agreed to pay a consistent price to insure (myself against) my future risks.
“This sudden hike feels unfair to policyholders.
“The increase is significant. Imagine a basic policy costing around RM200. The additional amount is like another monthly phone bill.
“Individuals might manage but it’s too much for family breadwinners, especially those with multiple policies.”
Wong said adjusting prices every three years might make sense from a business perspective but changing the price of existing contracts is problematic.
Vijayendiran Subrama, who posts on X under the handle @vijaysubra, said Bank Negara Malaysia has to act seriously on the matter.
“The past few years, insurance companies have been increasing premiums like there is no tomorrow.
“Many elderly (people) had to stop taking or renewing their medical insurance,” he tweeted.
It was reported that medical insurance premiums are expected to rise by between 40% and 70% next year, following notices sent by insurance providers to policyholders citing the rising cost of medical care in private hospitals as the primary reason.
In a joint statement on Nov 28, the Life Insurance Association of Malaysia, Malaysian Takaful Association, and General Insurance Association of Malaysia said they understand these adjustments may cause concern but will “remain committed to providing transparency and support during this time”.
The groups said apart from the rising costs of medical treatment and increased utilisation of healthcare services, factors that led to rising premiums include the high prevalence of non-communicable diseases like diabetes, which require long-term care, and an ageing population that has led to greater demand for medical care.
Bank Negara said in a statement on Nov 28 that it requires insurers and takaful operators (ITOs) to review their current repricing strategies to provide a more reasonable adjustment.
The central bank said this includes managing increases in premiums or contributions over time by taking into account the impact on policy owners or takaful participants.
In addition, it said ITOs are required to offer viable options for policy owners and takaful participants who are significantly affected by the higher premiums or contributions to continue having insurance or takaful coverage.
In their joint statement, the insurance companies agreed to “stagger” the premium increases and offer flexible premium payment plans.
