MIC senator urges Health Ministry, BNM to control private hospital charges

A senator from MIC has called on the Health Ministry and Bank Negara Malaysia (BNM) to firmly regulate treatment charges at private medical facilities and monitor insurance companies.

C Sivarraajh, who rejoined MIC in September, emphasised that such measures are crucial to ensure that medical costs do not continue to burden the public, particularly those from lower-income groups.

Citing the Mercer Marsh Benefits 2023 report, Sivarraajh noted that Malaysia’s medical inflation rate is expected to rise by 12 percent to 15 percent annually, a figure far exceeding the national average inflation rate of 3.3 percent recorded last year.

“A major issue increasingly affecting the rakyat is the skyrocketing cost of medical treatment. If this issue is not addressed immediately, it will have serious repercussions, not only for individuals but also for the future of the country’s healthcare system.

“The rising costs of medication, modern technology, and high demand for private hospitals are the main contributors. As a result, health insurance premiums have also surged,” he said in a statement yesterday.

Sivarrajaajh pointed out that in the past five years, premiums have increased by 30 percent to 50 percent.

“Many in the M40 and B40 income groups can no longer afford to pay these premiums.

“What does this mean? It means more people are left vulnerable without adequate medical coverage,” he added.

Price controls needed

Sivarraajh urged the government to introduce price control policies to prevent private hospitals from setting excessive medical charges.

“We can learn from neighbouring countries like Singapore, which regulates treatment costs through national schemes like MediShield Life,” he suggested.

He also proposed encouraging insurance companies to offer basic plans with lower premiums, specifically targeting the M40 and B40 groups, as practised in Germany and Holland.

“Healthcare is not a commodity. It is a fundamental human right. We cannot allow the rakyat to continue suffering under a skewed system.

“The government must act. We must act. If not, sooner or later, our healthcare system will collapse, and the people will bear the brunt of it. Don’t wait until it’s too late,” he added.

Rising insurance premiums

It was previously reported that insurance premiums could rise by 40 percent to 70 percent.

On Nov 28, BNM urged insurers and takaful operators to review their repricing strategies for a more reasonable implementation.

The central bank said that included managing increases in premiums or contributions over time by taking into account the impact on policy owners or takaful participants.

However, on Dec 3, Life Insurance Association of Malaysia (Liam) CEO Mark O’Dell announced that the increase in medical insurance premiums set for next year would remain in effect.

He said insurance companies have agreed to implement price adjustments gradually but only in the future.

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COMMENT | Insurance and rising costs in private hospitals