Kuala Lumpur: The proposal for implementing subsidies for the development of basic medical and health insurance and takaful (MHIT) products necessitates thorough studies, especially concerning the long-term effects on overall healthcare costs, stated Deputy Finance Minister Lim Hui Ying. She emphasized that considerations must also include the government’s financial status, protection benefits, healthcare expenses, and the long-term sustainability of the policy.
According to BERNAMA News Agency, the development of basic MHIT products is crucial to maintain continuous access to private healthcare services. Lim highlighted that sustainability of these products would be reinforced through stronger regulatory measures aimed at controlling medical cost inflation. Her remarks came in response to a motion by Chiew Choon Man (PH-Miri), who suggested an affordable medical insurance scheme to lessen reliance on the Employees Provident Fund (EPF).
As of December 31, 2024, 153,618 EPF members have used the facility to withdraw savings from the Sejahtera Account (previously Account 2) to purchase life insurance and critical illness insurance via the i-Lindung programme. Since its inception in July 2022, the total amount withdrawn reached RM51 million by December 2024.
Lim further commented that the basic MHIT products would be standardized to simplify understanding of their basic features, coverage benefits, and product limits for users. This standardization will aid users in comparing it with other offerings and making informed financial decisions.
“Participation on a sufficient scale for these basic MHIT products is vital to ensure their sustainability. A wider and more varied participation of policyholders enhances the risk pooling effect, directly improving the affordability and sustainability of these products,” explained the deputy minister.
She noted that achieving more diverse participation, with a balanced ratio between younger and older groups, would stabilize premium settings for these basic MHIT products in the long term. Consequently, Lim stressed the importance of leveraging the i-Lindung programme to form a robust group of early policyholders among EPF members.
Furthermore, extending access to basic MHIT products to government-linked companies (GLCs) and small and medium enterprises (SMEs) would include more employees in the scheme.
Lim concluded by saying, “All stakeholders, including the EPF, Bank Negara Malaysia, the Ministry of Health, the Ministry of Finance, private hospitals, insurers, and takaful operators, will continue collaborating to find effective long-term solutions, such as implementing the diagnosis-related group (DRG) payment model and enhancing transparency in medical cost pricing.”