KUALA LUMPUR: Reviewing existing medical insurance and takaful policies by introducing approaches such as co-payment options was one of six recommendations made to the government by the Parliamentary Special Select Committee on Health.
Committee chairman Suhaizan Kaiat stated that the recommendations were formed following an engagement session on Tuesday (Dec 10).
"This session aimed to discuss and gather insights from various parties on the issue of rising insurance and takaful prices, including five key stakeholders.
They are the Health Ministry, Bank Negara, Life Insurance Association of Malaysia, Malaysian Takaful Association, and General Insurance Association of Malaysia.
"This engagement focused on improving the pricing structure of medical insurance and takaful, considering current challenges such as rising treatment costs, the suitability of coverage offered, and the effectiveness of current policies," he told a press conference with several other committee members at the sidelines of the Dewan Rakyat on Wednesday (Dec 11).
Among the recommendations, Suhaizan said the co-payment options allow treatment costs to be shared between insurers and takaful operators (ITO) with policyholders and takaful participants.
"This helps reduce financial pressure and ensures the continuity of healthcare services. It also offers policyholders and takaful participants the option to choose service levels that match their financial capacity."
Suhaizan called on the government to devise a comprehensive mechanism to control healthcare service prices, ensuring transparent and fair pricing to prevent undue financial burdens on patients.
"This would include continuous monitoring of the costs of medicines, treatments, and medical procedures," he said.
He recommended that the Health Ministry accelerate the implementation of Diagnosis Related Groups (DRG) to classify patient treatments, enabling efficient financial management and payments, thus enhancing the national health system's efficiency and transparency in health fund management.
Suhaizan also suggested strengthening strategic relationships through the 'Rakan KKM' initiative, engaging the private sector, NGOs, communities, and individuals in supporting the transformation of the national health system, fostering broader innovation and public well-being.
He also urged the Health Ministry to expedite the establishment of a National Health Fund to provide sustainable financial resources for public healthcare needs, covering rising treatment costs and reducing household financial burdens, particularly for vulnerable groups.
Finally, he said the government needs to plan a gradual price increase for healthcare services to meet complex health demands, including expanding hospital capacity, increasing the healthcare workforce, and modernising infrastructure and medical technology.
"The committee is confident that these recommendations can address current and future health challenges. The priority is to protect the well-being of the public and strengthen the health system's capacity to face future challenges," he added.
In a separate press conference, the Backbenchers Club urged the government and Bank Negara to conduct thorough scrutiny of the issues facing both public and private health sectors, as well as to explore long-term solutions for the complex challenges of healthcare financing.
"We need a deeper and more comprehensive engagement for a solution to this issue. We should call for a proceeding through the Parliamentary Special Select Committee and the Public Accounts Committee to help the government identify a resolution," it said.
Concerns have been rising of late regarding the planned repricing of medical and health insurance and takaful (MHIT) products, with reports indicating potential premium increases of 40% to 70% for some policyholders come 2025.
