Kuala Lumpur:The Life Insurance Association of Malaysia (LIAM) has expressed support for the government's initiative to provide a RM200 first-year premium subsidy under the MediAsas plan for eligible small and medium enterprise (SME) employees, which aims to enhance access to basic medical protection.
According to BERNAMA News Agency, LIAM stated that the MediAsas plan, introduced by Prime Minister Datuk Seri Anwar Ibrahim during the Budget 2027 announcement, is designed to offer affordable premiums. Hospital payments will be structured around diagnosis and treatment, helping to manage costs and increase predictability.
LIAM highlighted that this plan supports long-term sustainability in medical protection, an essential measure amid escalating healthcare costs. It aims to alleviate the financial burden on smaller businesses while promoting wider access to medical services for employees.
The MediAsas plan is set to launch in January 2027, with the government subsidizing RM200 of the first-year premium per employee for eligible SMEs, limited to 50 employees per company. This initiative is anticipated to benefit up to 200,000 workers.
Mark O'Dell, LIAM's chief executive officer, emphasized the importance of medical protection as a component of financial preparedness, noting that initiatives like MediAsas enable more Malaysians to manage the financial risks linked with hospitalization and medical treatment.
The plan will feature standalone medical insurance and takaful products in two options MediAsas Teras, a standard plan, and MediAsas Fleksi, a standard-plus plan, offering coverage to individuals up to 85 years old. It targets those without existing medical insurance or takaful and seeks to provide a cost-effective alternative as premiums rise with age.
LIAM also expressed its intention to collaborate with Bank Negara Malaysia, relevant government agencies, and participating insurers to facilitate the introduction of MediAsas and increase public awareness of the plan. The association views this as a critical starting point for individuals and families to address their broader healthcare financing and protection needs.
Additional measures announced by Anwar include structuring hospital charges based on diagnosis and treatment categories to enhance cost management. Moreover, eligible Employees Provident Fund (EPF) members under 55 will have the option to use their Akaun Sejahtera savings to pay for MediAsas premiums.