MediAsas to offer more affordable private medical insurance

 BNM deputy governor Aznan Abdul Aziz says the new plan aims to make private healthcare coverage more accessible and sustainable.

MediAsas entered its pilot phase in the Klang Valley last month and will run until October before nationwide implementation next January. (Envato Elements pic)

KUALA LUMPUR:

Malaysians priced out of existing private medical and health insurance and takaful (MHIT) plans will have a new, lower-cost option when MediAsas is rolled out nationwide in January 2027, Bank Negara Malaysia (BNM) deputy governor Aznan Abdul Aziz said.

He said the plan was designed to provide most policyholders with adequate coverage at a manageable cost, rather than offering very high limits that would drive up premiums.

“This product is designed for the masses. You can have limits like RM2 million, RM3 million or RM5 million, but that will drive up the cost.

Aznan Abdul Aziz.

“So, we are trying to find a level that meets most people’s requirements to access essential coverage for medical treatments at private hospitals, at a manageable cost,” he told FMT.

Those who needed higher coverage limits could consider other MHIT products, Aznan said.

The product entered its pilot phase last month in the Klang Valley and will run until October 2026 before nationwide implementation.

While full details of MediAsas have yet to be announced, two variants have been outlined: MediAsas Teras, offering annual coverage of about RM100,000 – rising automatically to RM150,000 for policyholders aged 60 and above – and MediAsas Fleksi, with a higher annual limit of RM300,000.

Aznan said the RM100,000 limit would cover 99% of treatment episodes across a range of common medical conditions in a year, based on 2024 data on medical claims from Insurance Services Malaysia (ISM).

He stressed that MediAsas would complement, rather than replace, Malaysia’s public healthcare system, which remained the main pillar of universal health coverage.

Aznan said MediAsas formed part of the broader RESET initiative targeting drivers of medical inflation, including features meant to discourage unnecessary healthcare use and over-prescription while encouraging cost-effective treatment among participating hospitals.

He cited a World Bank finding from April that rising utilisation accounted for about 70% of cost growth, with higher average costs per claim contributing about 25%.

Other measures under RESET include medicine price displays, price ranges for common procedures, interoperable electronic medical records to cut duplicated services, and diagnosis-related group payments – a shift away from itemised fee-for-service billing intended to reduce cost variation across hospitals.

On pre-existing conditions, Aznan said the plan was meant to be more inclusive than current products for people with stable, well-managed conditions, though exclusions and premium loadings might still apply depending on underwriting.

Applicants would still need to disclose health information through questionnaires during the application process, he said.

Aznan also said that future premium increases would be guided by data, weighed by an independent governance board against the plan’s long-term commercial viability.

The board’s membership would include government and industry representatives, though the names have yet to be finalised, he said. - FMT