Kuala Lumpur: The Ministry of Health (MOH) has welcomed Bank Negara Malaysia’s (BNM) move to regulate the rise in medical and health insurance/takaful (MHIT) premiums, calling it a timely short-term intervention to alleviate the burden of sudden inflation on the public.
However, the ministry stressed that for long-term effects, a concerted effort through a whole-of-nation approach needed to be implemented.
For that purpose, the MOH said that it would continue with its existing initiatives, which would be coordinated through a series of engagements with stakeholders, including private hospitals, private clinics, non-governmental organisations (NGOs), the MHIT industry and health economists.
In addition, it said that the Private Health Care Facilities and Services Act 1998 [Act 586] would also be reviewed to strengthen the regulatory framework of the private health sector, ensuring equal access to high-quality, value-based health services for the public.
“We will continue to work with all parties to address this issue holistically and ensure universal healthcare for all,” the MOH said in a statement yesterday.
The measures announced by BNM include engaging insurers and takaful operators (ITOs) to implement premium adjustments due to medical claims inflation for a period of at least three years for all policyholders affected by the repricing.
The MOH clarified that medical inflation was a result of higher salaries and wages for healthcare workers, coupled with the ageing population, which contributed to an increase in medical needs as more people reached their golden age.
The ministry said that medical inflation was also caused by the increasing prevalence of non-communicable diseases (NCDs) such as diabetes and hypertension, which exposed more people to the risk of complications and other conditions, including end-stage renal failure, heart disease, and cancer.
To address inflation, the MOH said it had taken proactive measures, including offering a choice of “premium economy” services at reasonable and affordable prices through the ministry’s partners at its facilities.
The ministry said that it had also taken steps to develop national Diagnosis Related Groups (DRGs) as a service payment mechanism to encourage value-based health services (VBHC) across the private and public sectors.
The MOH said that it had also facilitated and encouraged more manufacturers to register their products, particularly generic drugs and medical devices, with national regulatory bodies, in addition to working with BNM and several other parties on the development of more sustainable MHIT products.
