Many Malaysians have recently noticed increases in their medical insurance or takaful premiums. The Ministry of Finance (MOF) has shared official data to explain the situation and outline steps being taken to manage rising costs.
Premium Increases Mostly Moderate, Says Finance Ministry
As of 30 April 2025, over 90% of revised Medical and Health Insurance and Takaful (MHIT) policies saw premium hikes of less than 10%, according to MOF data. The ministry also highlighted that more than 200,000 policies benefited from deferred premium adjustments, and over 14,000 lapsed policies were reinstated.
Why Are Premiums Rising?
The government explains that premium increases are mainly driven by medical inflation. This includes a rise in claims following the COVID-19 pandemic, as many delayed medical treatments are now being addressed. Additionally, the overall cost of healthcare is increasing due to factors such as the rise of non-communicable diseases and investments in new medical technology.
MOF acknowledged that these higher costs have made private medical insurance less affordable for some Malaysians, prompting their recent statement to Parliament.
A New Basic Medical Insurance Plan Is In Development
To improve affordability and access, the government is working on a basic MHIT product. Stakeholder consultations are ongoing to finalise the framework. The plan will be voluntary, with the concept expected to be completed by December 2025 and implementation targeted for the end of 2026.
Possible Use Of EPF Akaun Sejahtera For Premium Payments
MOF indicated that once the basic MHIT product launches, contributors may be able to use their Employees Provident Fund (EPF) Account 2 to pay premiums. This option will remain voluntary, allowing individuals to decide whether to use EPF funds or other resources.
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(Source: New Strait Times)
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