If you’ve noticed that medical bills seem to be getting steeper, you’re not alone.
Whether it’s the price of a simple check-up or hospital treatment, healthcare in Malaysia is becoming more expensive.
One major reason? Medical inflation, which drives up insurance premiums and overall healthcare costs, making it harder for everyday Malaysians to afford the protection they need.
Why are healthcare costs rising?
In 2024, Malaysia’s medical inflation rate hit a staggering 15%, pushing healthcare expenses to new heights, reported Utusan Malaysia.
This isn’t just affecting hospitals and clinics—it’s trickling down to policyholders who are now facing higher monthly payments for their health insurance.
Meanwhile, insurance companies and takaful providers (ITO) have been seeing big profits, raking in an estimated RM4.4 billion annually, according to Finance Minister II Datuk Seri Amir Hamzah Azizan.
He was replying to a question being posed by Bagan MP Lim Guan Eng concerning how much profit life insurance companies have made since 2018, and what were the solutions for premium increases for medical insurance.
However, Amir Hamzah assured the government, through the Ministry of Health (MOH), will focus on health reforms that address the issue of medical inflation and charges levied by private hospitals.
It includes the implementation of the Diagnostic Related Group (DRG) payment model, which will enhance transparency in the cost of drugs and comparison of common medical costs.
What’s being done to help?
Seeing how this financial strain is affecting Malaysians, Bank Negara Malaysia (BNM) has stepped in with some temporary measures:
- Capping premium hikes – 80% of policyholders won’t see their insurance premiums increase by more than 10%, as assured by Deputy Finance Minister Amir Hamzah.
- One-year relief for seniors – Those aged 60 and above won’t have to worry about any premium hikes for the next year.
- More affordable plans on the way – Insurance providers must roll out alternative medical insurance plans tailored to different income levels by the end of 2025.
Beyond short-term fixes, BNM is also requiring insurance providers to introduce more budget-friendly medical plans that cater to different income levels. These alternatives are expected to roll out by the end of 2025, offering Malaysians better choices without sacrificing coverage.
How this helps you
These efforts aim to:
- Keep health insurance costs more manageable for everyday Malaysians.
- Provide financial relief to seniors who rely on insurance the most.
- Offer better insurance options so Malaysians can choose plans that fit their budgets.
You can watch Amir Hamzah’s revealing of the RM4.4bil profits from the 1:36:00 mark here:
