Surging health insurance premiums in Malaysia have caused public distress to the extent that the Public Accounts Committee (PAC) of the country's parliament has decided to hold public hearings on the issue.
It would be for the first time that the PAC will hold open public hearings on rising health insurance and takaful premiums and private hospital fees. The PAC will hold two hearings one each in Penang and Kuala Lumpur.
The public hearings to be held in February 2025 will hear public’s views and debate on rising private hospital fees, increasing insurance premiums and their impact on public healthcare. The takaful premiums too have seen a surge. According to the complaints received the health insurance premiums have risen by as much as 30%-50% despite a cap of 10% by Bank Negara Malaysia (BNM).
The PAC in a press statement has acknowledged the growing public complaints about uncontrolled hikes in private hospitals fees and health insurance premiums. While the committee has welcomed the efforts being made by the government and the BNM to cap premium increases, it said the problem needs long-term solutions.
According to the PAC’s statement to support private healthcare reforms, the committee aims to conduct a comprehensive inquiry involving all stakeholders and public input.
BNM in its directive issued on 20 December 2024 had capped the annual premium increases at 10% for most policyholders in response to public outrage over steep health insurance premium hikes, with some exceeding over 200%. The directive had also mandated the insurers and takaful operators to spread out the health insurance premium hikes over three years.
The PAC statement has emphasised that public views will be heard openly and included in its report before being tabled in the parliament. After these public hearings, the committee will conduct closed-door meetings under Dewan Rakyat Standing Order 85, summoning major stakeholders from ministries, agencies and industry players.
“The PAC invites everyone including (and not limited to) complainants against insurance companies and private hospitals, insurance policyholders, consumer association representatives, insurance agents, private hospital management, medical specialists, hospital staff, pharmaceutical firms, NGOs, academics, and health care experts.”
Both public hearings will be moderated by PAC member and Bayan Baru member of parliament Sim Tze Tzin, who had launched a public channel for complaints on healthcare costs. The channel has received around 300 complaints highlighting steep premium hikes that disproportionately affect retirees and individuals with non-communicable diseases like cancer. Other concerns include price disparities between insured and uninsured patients, as well as excessive private hospital charges.