Medical treatment can be expensive, and the costs can add up quickly. Even a short hospital stay can mean a bill of thousands of ringgit, while major illnesses or longer treatments can cost tens or even hundreds of thousands.

That is where medical protection can make a real difference. But comprehensive coverage generally comes with higher premiums, creating a difficult balance between the level of protection offered and what people can realistically afford.

MediAsas is positioned around this gap: providing a level of medical protection that is meaningful while keeping costs within reach of a wider group of people. The idea is to make basic protection more accessible and sustainable, rather than offering extensive coverage at a price that may be difficult for many to maintain.

Why not simply offer RM3 million in coverage?

The standard MediAsas plan has an annual limit of RM100,000, with the annual limit rising to RM150,000 for individuals aged above 60. 

It is natural to wonder whether the coverage limit could be higher. Some products currently on the market offer annual limits which run into the millions! 

To be sure, the annual limits for MediAsas were set with recent medical claims experience in mind. According to Bank Negara Malaysia, 99% of treatment episodes across a range of common medical conditions (even after allowing for some possibility of multiple admissions) cost RM55,225 or less. So RM100,000 would be more than adequate in the vast majority of cases. 

Typically, higher annual limits come with higher premiums. Ultimately, consumers should ask whether they should be paying for coverage which they are unlikely to use.

For those who want a higher annual limit, MediAsas has a “Fleksi” tier that provides an annual limit of RM300,000 with a higher deductible. This gives consumers another choice depending on their protection needs and affordability. 

Why doesn’t MediAsas cover every existing medical condition?

Like many medical insurance products, MediAsas may place certain conditions outside its coverage. Whether a pre-existing condition is covered depends on the product terms and the outcome of the relevant underwriting assessment.

This may understandably be a concern for individuals who are already managing a medical condition. However, medical insurance operates by pooling risks across a broader group of policyholders. If all pre-existing conditions were covered without any restrictions, the resulting claims costs could be considerably higher, which may place additional pressure on premiums. 

MediAsas is designed with a standardised approach to underwriting and eligibility, with the aim of making medical protection accessible to more people while maintaining safeguards to support affordability and sustainability. The treatment of prior medical conditions will depend on the applicable terms and assessment. 

Underwriting, exclusions and defined benefits are therefore commonly used to help manage the overall risk and cost of a medical insurance product. Transparency of these terms is equally important, so consumers understand from the outset what is covered, what limitations apply and which expenses may fall outside the scope of their coverage.

While MediAsas is a fully underwritten product, its underwriting rules have been made more inclusive for people with certain conditions to obtain coverage.

Why do you still pay part of the bill? 

This is because MediAsas uses cost-sharing to help control claims costs.

Cost-sharing means the policyholder pays a portion of the medical expenses, while the plan covers the remaining amount, subject to the terms of the coverage. This helps manage overall claims costs and encourages more mindful use of healthcare services, which in turn can help support more affordable and sustainable premiums over time.

The aim is not to simply shift cost to consumers, but to find a balance between the level of support provided by the plan and what individuals can reasonably afford to contribute.

Cost-sharing is not a new concept in medical insurance or takaful products. In fact, co-payments are a regular feature of medical plans all over the world. The important consideration is ensuring that the amount required to pay remains reasonable and does not stop them from seeking necessary medical treatment.

MediAsas is one piece of a wider healthcare reform

MediAsas is not a silver bullet designed to address all of Malaysia’s healthcare cost challenges by itself. But it is part of the broader RESET healthcare reform agenda, which looks at how Malaysia’s healthcare system can become more affordable and sustainable over time.

More insurance coverage alone cannot fix the problem if the cost of healthcare keeps climbing. In fact, when hospital bills rise, insurers may face higher claims, which can eventually put pressure on premiums too.

That is why affordability also depends on what happens across the wider healthcare system — including greater transparency around healthcare prices and stronger digital health systems to deliver more cost-effective care and improvements in how healthcare providers are paid.

Why start with a pilot?

Before a product like MediAsas can be rolled out more widely, it needs to be tested. The pilot allows the experience to be assessed from start to finish — from signing up and assessing eligibility to hospitalisation, claims, payments and customer support.

While MediAsas is being tested on a small scale right now, what is learnt along the way will be used to improve the product before the national rollout. Importantly, the pilot should not be viewed as the final version of MediAsas. 

Could MediAsas work for you?

That depends on what you already have and what you need.

For those currently without medical coverage, MediAsas could provide an affordable starting point.

For individuals currently insured, but who are looking for a more affordable option to their existing medical plans given significant premium increases over time, MediAsas would also be an attractive option (once it is launched early 2027).

For those who are happy with their current coverage, and are willing and able to sustain large increases in premiums going forward, switching to MediAsas might be less relevant.

Whatever the case, consumers should carefully consider their options given their circumstances. Consider what is covered, where the limits are, what you may need to pay yourself and whether the premium will remain manageable for you in the years ahead.

If premium stability and affordability are important to you, MediAsas would be for you. If you value a premium product with extensive coverage, and are able to afford it, a regular medical plan might be what you are looking for.

At its core, MediAsas is about finding a practical balance: how can more Malaysians have meaningful medical protection without making that protection too expensive to maintain?

Affordable medical protection is not just about having a policy. It is about having protection you understand, can afford and can continue to maintain over time.