We’re always told that having insurance, especially medical insurance, is important in case we end up in the hospital for something major. However, most of us may not be able to afford medical insurance at the rate insurance premiums is rising.
According to a report by Utusan Malaysia, medical insurance premiums are expected to rise by 40 to 70% next year. Some policyholders have been informed of this impending increase through notices by their insurance providers with the common reason given being the rising healthcare costs at private hospitals.
This news has led some to consider stopping paying for their insurance policies and letting them lapse because they can’t afford to continue paying the steep price anymore.
A policyholder named Hamidi shared that he was paying RM188.47 per month and would need to pay RM237.34 when the price hike commences. He said his premiums increased from RM157.69 to RM188.47 last year and questioned why the premiums increased each year.
Hamidi said it’s a financial burden, adding that the premium increase has become an annual affair.
Another policyholder, Safie Wahab, plans to discontinue his policy when the time comes. He shared that his insurance premium had increased by RM133, from RM244 to RM377 per month.
Eventually, people may no longer be able to afford health insurance, and existing policyholders might let their policies lapse.
Safie Wahab
The rising premiums definitely affect the elderly as well. In a letter to The Star, Tony Pereira said his medical insurance premium would increase 275% from RM540 to RM2,030 monthly because he’s reaching the age of 65 and a significant rise in medical treatment cost. He took up his insurance policy in 2010 at age 51 and was told he should have taken out insurance when he was much younger.
He was informed that if he opposed the increase, the investment within the policy would sustain his premium for a few months before the policy ultimately lapsed, leaving him without medical insurance entirely.
Meanwhile, Pereira took out the policy for his son at age 18. In just two years, his son’s medical insurance premium sees a rise of 30%.
He felt the levels of increase were unfair and punitive and wondered what Bank Negara Malaysia (BNM) would do to protect the public.
Pereira mentioned that insurance companies state that they are facing significant increases in the value of claims. However, Pereira said the company’s profit and loss (P&L) accounts look very healthy.
The expensive insurance premiums are already leading more people, especially the middle class, to public hospitals for medical treatment which adds to the crowding and overflow.
The domino effect may trickle down and hit insurance agents themselves when fewer clients can afford the expensive premiums. This could affect their commission rates and the company may face a high turnover.
Our intention of buying insurance is to protect ourselves, and it seems like now we are buying insurance for the greed of insurance companies and also hospitals and doctors
— JACKie (@codey_lim) November 26, 2024
Looks like now only the Top 1% can afford insurance and private hospitals. The T15 suffer la after this when the gov takes away the free healthcare subsidy. Max out credit cards and die with debts with hospital bills.
— Wendy (@wendyweeww) November 26, 2024
Apa kesannya pada pelanggan
Ramai akan tutup polisi dan looking forward untuk ambil polisi baharu yang lebih murah dan berbaloi.
Kesan pada mereka yang pernah claim dan sakit terpaksa topup, bayar lebih atau laps.
Kesan pada agen pula?
Agen yang bantu pelanggan untuk dapatkan… https://t.co/u5FseGfIdN
— AliffShanusi (@aliffshanusi) November 26, 2024
What has Bank Negara Malaysia said?
In a statement on 6 July, Bank Negara Malaysia said it would not cap copayments in health insurance and would leave it to insurance companies to determine the maximum limits.
BNM noted that the country recorded medical inflation at 12.6% in 2023, which is much higher than the 5.6% global average.
Meanwhile, the insurance and hospital industries have blamed each other for the rising healthcare costs.
According to Code Blue, the Life Insurance Association of Malaysia (LIAM) accused private hospitals of overcharging and issuing long and inscrutable hospital bills.
However, the Association of Private Hospitals Malaysia (APHM) said private hospitals bear many expenses beyond medical consumables and only rely on one revenue source.
It’s also important to note that although both industries claim to bear unsustainable costs, they recorded huge and increased profits this year.
There’ll be a meeting with insurance companies and private hospitals
Due to the public outcry, Bayan Baru MP Sim Tze Tzin said he would hold a meeting with insurance companies and private hospitals to gather more information about the increase in medical insurance premiums.
Sim and other PKR MPs have started an initiative to collect information regarding the rising cost of private hospitals and medical insurance premiums. They have received 52 complaints so far.
Sim encouraged more people to file complaints so they could learn more and address the issue.
