Malaysia’s medical insurance premiums are anticipated to increase up to 30 percent in 2020 on the back of rising healthcare costs. The inflation in medical and hospital costs in recent years has forced insurance companies and agents to hike prices, Free Malaysia Today reported.
Another factor contributing to increase in insurance premiums is the technological advancements in treatments followed by the increase in patient count.
Malaysia is on the brink of entering the fourth industrial revolution, alongside 5G adoption. With growing demand for healthcare services, consumer groups and experts suggest that the government should ensure that healthcare costs remain low.
Leading insurer AIA Malaysia sent a notice to clients stating that “With the number expecting to rise further and outpace the general inflation rate, we have to make the necessary adjustments to your medical plan’s premiums so that they can keep up with healthcare inflation.”
According to data from the General Insurance Association of Malaysia, total health expenditures in 2018 reached $14.77 billion. Nearly 52 percent of that amount was paid by the government, while 32 percent of it was paid by individuals through private insurance, corporations and other agencies.
Research by Fitch Solutions shows that healthcare services for the ageing population in the country will increase, with 15.3 percent of Malaysians set to reach 65 years and above by 2030.
Last June, Health Minister Datuk Seri Dr Dzulkefly Ahmad had said that the aim is to build an efficient healthcare financing system involving the government, private sector and insurance companies, The Sun Daily reported. This system will help Malaysians receive proper treatment despite their financial setbacks.