Insurance Plans Likely To Become 40-70% More Expensive Next Year Due To Medical Inflation
Have you experienced a hike in your insurance premium as well?
By Yap Wan Xiang — 27 Nov 2024, 04:45 PM
Medical insurance premiums in Malaysia are likely to rise by 40-70% next year, leading many policyholders to consider terminating their policies due to the escalating costs
Some policyholders have received notices from their insurance companies, citing the rising cost of healthcare at private hospitals as the main reason for the surge in premiums, reported Utusan Malaysia.
Speaking to the Malay daily, one policyholder, Hamidi, shared his frustration, noting that his monthly premium will increase from RM188.47 to RM237.34 starting next February.
This follows a previous increase from RM157.69 to RM188.47 last year.
Another policyholder, Safie Wahab, mentioned that his premium increased from RM244 to RM377 per month, a jump of RM133. He said the 54% hike is making him consider discontinuing his policy due to the high costs.
The Utusan Malaysia report comes a week after a group of PKR members of parliament (MPs) highlighted the rising cost of private healthcare services, reported FMT.
They claimed that the increasing costs are forcing the middle class to seek treatment at government hospitals and clinics, which in turn will further overcrowd these public facilities.
Without citing any data, Bayan Baru MP Sim Tze Tzin also claimed that the rate increases are hurting the middle class, who can no longer cope with the high costs.
Responding to the issue, the Association of Private Hospitals Malaysia defended the premium hike, stating that it will support advancements in medical care and technology
Dr Kuljit Singh, the association's president, said the expected 40-70% hike is "undoubtedly justified" as it could lead to better treatment outcomes and quality of care.
He, however, acknowledged that a substantial rise might result in a short to medium-term drop in medical coverage holders, potentially leading to increased demand for public healthcare services, reported FMT.
Meanwhile, Datuk Seri Dr Jacob George, the president of the Subang and Shah Alam Consumers Association, called for a limit on premium increases.
He also suggested that insurance companies disclose their total annual losses if they intend to raise premium rates.
"This increase has to have a limit. After all, how much money do they spend to cover contributors compared to the money received by the insurance companies?
"The saddest part of it all is that the protocol for contributors to make a claim remains complicated," he remarked.
Jacob argued that such hikes do not align with the MADANI government's approach and urged relevant ministers to intervene.
PKR MP Sim Tze Tzin is among the lawmakers who raised the issue of rising insurance premiums.
Image via PKR