PKR reps want task force set up to probe rising insurance premiums

Several PKR lawmakers have called on the Health Ministry to set up a task force to investigate the rising insurance premiums matter and the role of private hospitals.

At a press conference today, Bayan Baru MP Sim Tze Tzin suggested that the task force be composed of medical experts, public health policy experts, and other relevant professionals to formulate a mutually beneficial solution between the private hospitals, insurers, and the public.

“If we examine the profit growth of private hospital groups, the figures are highly encouraging.

“The question is, could this be contributing to the rising insurance premiums faced by Malaysians?” he asked.

Sim added that without sufficient data or expertise, it is difficult to determine whether these profits are directly linked to the growing complaints about premium increases.

He also pointed out that private hospitals have aggressively pursued profits, citing data from two major healthcare groups -KPJ Healthcare Group and IHH Healthcare Group.

“While we acknowledge that private hospitals are profit-driven, the significant profits they’ve posted in recent years cannot be ignored,” he explained.

According to the data, KPJ Healthcare Group, which operates 29 private hospitals in Malaysia and one each in Thailand and Bangladesh, has reported a gross profit increase of at least 34 percent over the past five years, with the highest recorded at 41.9 percent last year.

IHH Healthcare Group, which operates 18 hospitals, recorded earnings before interest, tax, and amortisation (Ebita) of between 21.5 percent and 25 percent from 2020 to 2023.

No blame game

Last week, Sim urged Bank Negara Malaysia (BNM) to intervene and investigate insurers and takaful operators (ITOs) who continue to raise premiums despite a central bank directive to review them first.

It was previously reported that premiums could rise by 40 to 70 percent, prompting Sim to urge the public to share their feedback by emailing aduan.pkr.hospital.insurans@gmail.com.

While he had previously received 147 public complaints on the issue, the number has since risen to 197.

Expanding on his remarks, he called for the Public Accounts Committee to conduct hearings to investigate the situation thoroughly.

“Our goal is not to blame any party or limit the profitability of the private healthcare sector.

“Rather, we urge the government to find sustainable solutions that will support the private healthcare ecosystem and the health financing system, ensuring the sector’s long-term, healthy growth,” he said.

Sim also added that representatives from BNM will meet the backbenchers tomorrow in a closed-door meeting regarding the issue.

Other lawmakers who supported the statement included Tebrau MP Jimmy Puah, Sungai Petani MP Taufiq Johari, Segamat MP R Yuneswaran, Miri MP Chiew Choon Mun, Gopeng MP Tan Kar Hing and Senator Amir Ghazali.

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