News Asia18 Mar 2025

Malaysia:Insurers to see minimal impact from BNM premium cap

| 18 Mar 2025

RHB Investment Bank (RHB IB) believes that Malaysia's upcoming revision of private general practitioner (GP) consultation fees will not financially affect hospitals, as their pricing is governed by separate regulations.

The bank also noted that insurers, who are already contending with the potential effects of Bank Negara Malaysia's (BNM) premium repricing cap, will experience minimal impact from the changes.

This is due to the relatively small proportion of medical claims coming from private clinics.

“We weren’t completely surprised by the revision of GP fees, as discussions on this matter had been ongoing even before the Covid-19 pandemic, especially since private GP fees (ranging from RM30 to RM125 per visit) had remained stagnant for over 10 years,” RHB IB said, reported The Edge Malaysia.

Last Friday, the Health Ministry revealed that it is in the final stages of discussions with the Department of Statistics Malaysia to set the new consultation fees, with an official announcement expected in April.

Currently, the regulated consultation fee stands between RM10 and RM35 ($2.10 - $7.35).

This revision follows concerns that many GPs are struggling with rising operational costs, which threaten the viability of private primary care. The Malaysian Medical Association has proposed a minimum consultation fee of RM60.

“For the insurance sector, a revision of private GP consultation fees will be inflationary for claims, although we think this should be manageable,” it said.

Late last year, BNM introduced a 10% cap on medical insurance premium hikes for at least 80% of policyholders through to the end of 2026, along with a one-year pause on premium increases for policyholders aged 60 and above.

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