Review policy on insurance co-payment, Wanita MCA tells central bank

 

WANITA MCA has called for Bank Negara Malaysia (BNM) to review and, if necessary, rescind the upcoming implementation of co-payment requirements for medical and health insurance and takaful (MHIT) products, scheduled to take effect from Sept 1, 2024.

Its national chairperson Wong You Fong said the central bank needs to formulate clear and unambiguous guidelines on the co-payment coverage percentage and contents.

“Complexities to insurance policies and products will potentially confuse consumers about the extent of financial obligations and undermine consumer trust and satisfaction especially if they do not fully understand when co-payments apply or if the insurance coverage falls below their expectation,” she said in a statement on Tuesday (July 9).

Wong You Fong (Pic credit: The Star)

“While intended to lower premiums, these co-payments could restrict access to essential healthcare services, particularly for the B40 and M40 groups and patients with chronic conditions who are already struggling with soaring costs of living and a slew of new taxes introduced coupled by the withdrawal of subsidies for diesel and utilities.

“The existing disparities in healthcare access will be further exacerbated, potentially widening social inequalities in health outcomes in the long term.”

According to Wong, patients who ill-afford the co-payments will throng overcrowded government hospitals and clinics for treatment, thereby further overstretching public health services personnel and the limited facilities.

As a result, government expenditures will escalate, waiting queues grow longer, while more medical officers would be driven to the private sector upon completion of their mandatory housemanship and service contracts.

“Co-payments overshadow the diverse healthcare needs of consumers. Some individuals may require frequent medical attention or specialised treatments that could become financially burdensome under a co-payment system, even with caps in place.

“Co-payments may discourage preventive care and early intervention, as individuals may delay seeking medical attention to avoid out-of-pocket expenses,” she noted, adding that this could result in higher long-term healthcare costs and more severe health conditions that require expensive interventions.

“While carrying out co-payment features intends to promote affordability and sustainability of medical and health insurance/takaful products, Wanita MCA suggests dropping the co-payment requirement.

“This is to avoid unintended consequences and ensure equitable access to healthcare and consumer welfare, promoting sustainable solutions that support comprehensive coverage for all Malaysians.” – Focus Malaysia