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KUALA LUMPUR - The MediAsas plan, set to launch in January 2027, will provide a financial and healthcare safety net for Malaysia’s middle-income group (M40), who are facing medical inflation.
Health Minister Datuk Seri Dr Dzulkefly Ahmad said the plan would protect the M40 through transparent cost control, without hidden or excessive charges.
“Currently, a total of 340,000 private insurance policies have been surrendered by policyholders due to not being able to pay private premiums, and (more) people opt to go to government facilities; hence, the ministry comes up with this financial safety net.
“No citizen should fall into poverty just because he or she wants medical treatment; therefore, this Madani health financial protection comes forward by offering an affordable basic protection scheme,” he said in a Facebook post on Sunday.
Dzulkefly said the pilot, held in the Klang Valley since the end of July, also allows policyholders to pay flexibly using their Employees Provident Fund Akaun Sejahtera (Akaun Dua) to ease the monthly burden.
For vulnerable groups, he said the Tabung Bantuan Perubatan (Medical Assistance Fund) was raised by 50 per cent to RM60 million from RM40 million, specifically to cover high-priced medical devices such as bone implants and heart stents.
He said the government had allocated RM80 million to the Peduli Kesihatan scheme for the B40 group (PeKa B40).
MediAsas is the new name for the base medical and health insurance and takaful (MHIT) plan. It will be offered as a standalone product in two versions: MediAsas Teras, a standard plan, and MediAsas Fleksi, a standard-plus plan. Both cover individuals up to 85. Indicative monthly premiums are expected to range from around RM60 to RM550 for those entering at up to 70.
Bank Negara Malaysia, the Finance Ministry and the Health Ministry published a White Paper on the plan in January. It sets the Teras annual limit at RM100,000, rising to RM150,000 for those over 60. The standard-plus option offers up to RM300,000, with a deductible of RM10,000 to RM15,000.
Six insurers and takaful operators are taking part in the pilot: AIA, Allianz Life, Great Eastern, Prudential BSN Takaful, Etiqa Family Takaful and Syarikat Takaful Malaysia Keluarga. From January 2027, every licensed life insurer and family takaful operator writing medical business must offer Teras. Fleksi is optional.
MediAsas forms part of the RESET reform framework. The Joint Ministerial Committee on Private Healthcare Costs was set up on Jun 25, 2025, co-chaired by Finance Minister II Datuk Seri Amir Hamzah Azizan and Dzulkefly.
Premium hikes
The reforms followed public anger over steep rises in medical insurance premiums from late 2024. Policyholders were told to expect increases of 40 to 70 per cent for 2025 and some chose to end their policies. Some hikes reportedly exceeded 200 per cent.
On Dec 20, 2024, Bank Negara capped annual increases at 10 per cent for most policyholders and ordered insurers to spread the rises over three years. It also froze premiums for a year for those aged 60 and above on minimum plans. Insurers must keep the cumulative increase to no more than 30 per cent by the end of 2026. The measures took effect on Jan 15, 2025.
As of Apr 30, 2025, more than 200,000 policyholders had benefited from deferred adjustments and over 14,000 policies had been reactivated. The Finance Ministry later said more than 90 per cent of adjusted policies saw rises below 10 per cent.
