Medical insurance premiums reportedly set for 40-70% rise

 

The rising cost of healthcare at private hospitals will reportedly lead to an increase in medical insurance premiums next year.

PETALING JAYA: 

Medical insurance premiums are expected to rise by 40-70% next year, with some policyholders choosing to terminate their policies as they are unable to bear the escalating cost of the monthly fees.

Utusan Malaysia reported the impending increase based on notices sent by insurance providers to policyholders, citing the rising cost of healthcare at private hospitals.

A policyholder who asked to be known as Hamidi said he received a letter from his insurance provider stating that the new rates would take effect next February.

“Previously, I was paying RM188.47 per month, but now I will need to pay RM237.34. Last year, it increased from RM157.69 to RM188.47. The question is, why do the premiums increase every year? This is really a burden,” he said.

“It feels like an annual event. Whenever we ask for an explanation, the company says it’s due to rising treatment costs. What proof is there that treatment costs increase every year?”

Another policyholder, Safie Wahab, said his insurance premium had increased by RM133, from RM244 to RM377 per month.

He hinted that he might discontinue his policy in time to come.

“Eventually, people may no longer be able to afford health insurance, and existing policyholders might let their policies lapse,” he said.

Utusan Malaysia said it had attempted to obtain clarification from several insurance companies but received no response.

Subang and Shah Alam Consumers Association president Jacob George called for a limit to increases in medical insurance premiums and demanded that insurance companies disclose their annual losses if they plan to raise premiums.

“If this hike goes through, it doesn’t align with the Madani government’s approach. The relevant ministers should ensure that these increases don’t take place,” he said, adding that policyholders often have a hard time applying for claims.

Last week, a group of PKR MPs claimed that the rising cost of private healthcare services was forcing the middle class to seek treatment at government hospitals and clinics, exacerbating the problem of overcrowding at these facilities.

While he provided no data to support the claim, Bayan Baru MP Sim Tze Tzin said the rate increases were hurting the middle class, whom he said could no longer cope with the high costs.

Sim also said that PKR backbenchers would be gathering feedback from those affected by high private hospital bills. - FMT