Kuala Lumpur: Prime Minister Datuk Seri Anwar Ibrahim today gave his assurance to Malaysians that the government will not tolerate any sharp increase in insurance premiums.
Answering questions in the Dewan Rakyat this morning, the Tambun MP said Bank Negara Malaysia is working on an interim measure to streamline the planned increase of the premiums next year, promising that it would be small and “sensible”.
“What we’re doing now is not a moratorium but interim so that the increment is small and sensible,” he said.
“That is why we met today and maybe by the end of the week there will be a guideline ready. This would be among several measures to be taken, including amending an Act to implement a DRG (diagnostic related group) system because if we can regulate (the prices) we can control (the increment),” the prime minister added.
“But if there is a drastic increment this is something the government and BNM would not accept.”
DRG is a system for classifying patients into groups based on their diagnosis, treatments, and other factors.
The US is among countries that adopts the system, which is used to determine how much hospitals are reimbursed for patient care and to encourage hospitals to provide more efficient care.
Insurance firms are reportedly planning to raise medical premiums next year, rumoured to be between 40 and 70 per cent, amid rising healthcare costs.
According to Bank Negara Malaysia, the country recorded a 12.6 per cent medical cost inflation rate in 2023 — more than double the global average of 5.6 per cent and an increase from 12 per cent in 2022.
The news has fuelled concerns, prompting lawmakers to raise the matter in Parliament as they called for government intervention.
Anwar pledged to help. In the House, Anwar hinted at measures to tackle rising medical and treatment costs, blaming it mostly on what he claimed to be a supply monopoly.
The Tambun MP said he plans to terminate some of the contracts but did not specify with which company.
“One of the reasons cited (for the premium hike) is medical costs. We know at the moment prices of medicines and treatment are not regulated, in fact the sourcing of medicines for decades has been a monopoly,” he said.
“As such we will terminate the contract with one or two companies and seek out sources from various countries so we can procure generic medicines that are cheaper or reasonable,” the prime minister added.
