PAC to hold public hearing on soaring healthcare costs, insurance hikes

Summary

• The Public Accounts Committee will hold a public hearing to address the rising costs of health insurance, takaful premiums and private hospital charges.

• The committee acknowledges growing public concerns over unchecked increases, adds that a long-term solution must be explored.

In an unprecedented move, the Public Accounts Committee (PAC) will conduct a public hearing to address the rising costs of health insurance, takaful premiums and private hospital charges, as well as their impact on public healthcare.

“Through this public hearing, all perspectives will be openly considered and incorporated into the PAC report before it is presented in Parliament,” the committee stated.

The PAC acknowledged growing public concern over the unchecked increase in private hospital fees and insurance premiums, as well as their strain on the public healthcare system.

“While we welcome the interim measures taken by the government and Bank Negara Malaysia to cap insurance premium hikes, a long-term solution must be explored,” the committee emphasised.

To that end, the PAC aims to support the government in drafting a “Private Healthcare Reform” plan through comprehensive discussions with all stakeholders, ensuring public input is taken into account.

Following the public hearing, PAC said it would conduct closed-door proceedings under Rule 85 of the House of Representatives Standing Orders, summoning key stakeholders, including relevant ministries, departments, and government agencies, to provide testimony.

“Therefore, PAC invites the public, including (but not limited to): complainants against insurance companies and private hospitals, insurance policyholders, consumer association representatives, insurance agents, insurance company representatives, private hospital management representatives, specialist doctors, private hospital staff representatives, pharmaceutical company representatives, NGOs, academics and healthcare service experts to attend the hearings,” it added.

The first public hearing session will take place in Penang at the AC Marriott Hotel, Bukit Jambul on Feb 14 from 9am-12pm. The second will be held in Kuala Lumpur at the banquet hall, main block, Parliament building on Feb 21 from 9am-12pm.

Those interested in attending can register here.

Zero tolerance

Previously, Prime Minister Anwar Ibrahim said the government would not tolerate unjustified increases in health insurance premiums.

“If I am not convinced that the increase is reasonable, I will not support or allow it. This is our principle. Any increase in insurance premiums must be backed by valid reasons.

“For instance, one of the most unreasonable factors is the rate itself. There needs to be a standard, as seen in many countries,” he added.

Yesterday, Finance Minister II Amir Hamzah Azizan said the continuous rise in medical inflation has led to an increase in the claims rate for medical and health insurance and takaful.

He was reported as stating that Bank Negara has taken several interim measures to curb the impact of rising premiums, which took effect on Jan 15.

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