Kuala lumpur: Discussions are ongoing between the Finance Ministry (MoF) and the Employees Provident Fund (EPF) to assess whether the concept under the base medical health insurance/takaful (MHIT) plan can be among the products allowed for withdrawal purposes. Finance Minister II Datuk Seri Amir Hamzah Azizan said MoF expects that with the approach being taken and the support from all parties, a better system can be established, which in turn will support the healthcare system being developed by the government.
According to BERNAMA News Agency, this basic insurance is important to provide more options for the people, as stated by Amir Hamzah during the Ministers' Question Time in the Dewan Rakyat today. He was responding to Khoo Poay Tiong (PH-Kota Melaka), who asked whether the government is prepared to allow insurance purchasers to use EPF contributions to balance affordability and coverage, so that MHIT can offer comprehensive protection for the benefit of policyholders.
Amir Hamzah also mentioned that as an initial step, through existing insurance products, MoF expects a method to control rising costs by incorporating the concept of co-payment. He clarified that this co-payment does not mean high payments are being asked for, but rather transparency in pricing and responsibility from the insurer providing the coverage to control the cost of healthcare services.
The Finance Minister highlighted that MoF continuously welcomes public feedback to improve the insurance system. He noted that the pilot project will begin this June, aiming to test the acceptance level through this initiative. Focus groups conducted have currently indicated positive responses from the target groups identified.
In response to a separate question from Roslan Hashim (PN-Kulim Bandar Baharu) on whether all insurance and takaful operators (ITOs) will be allowed to participate in the MHIT pilot project, Amir Hamzah stated that Bank Negara Malaysia, as the regulatory authority for the insurance industry, has opened participation to all ITOs to participate in the basic MHIT scheme. However, certain eligibility requirements must be met to ensure only qualified ITOs with the capacity to underwrite insurance are allowed to participate.
Additionally, Amir Hamzah mentioned that the basic MHIT plan will be offered to all insurance companies at the same price. This standardised pricing aims for industry-wide uniformity, allowing the risk to be shared among all participating ITOs. Expanding the scope of participation is expected to reduce premiums further within the implemented system.