MHIT Reforms Aim To Reset Healthcare Insurance, Curb Rising Premiums

KUALA LUMPUR, Jan 23 (Bernama) -- Reforms under the Medical and Health Insurance/Takaful (MHIT) framework aim to reset Malaysia’s healthcare insurance system by shifting away from fee-for-service payments towards a value-based model, in a move to curb rising premiums and improve patient access to care.

Public Health Physician and National Cancer Society of Malaysia Managing Director Assoc Prof Dr M. Murallitharan said the proposed reforms represent a fundamental change in how healthcare services are financed, as escalating healthcare inflation has made insurance increasingly unaffordable for many Malaysians.

“Insurance is becoming so expensive that the average Malaysian who is in the middle income bracket is no longer able to pay for the cost of premiums,” he said during Bernama TV’s The Nation programme titled A New Direction for Medical Coverage in Malaysia, today. 

He said rising healthcare inflation has resulted in costs being passed directly to policyholders therefore the MHIT initiative is intended to ‘reset’ the system by transitioning towards a value-based or bundled payment mechanism, where an entire course of treatment is billed as a single package rather than itemised charges.

“So what we're trying to do is move to something called like a bundle, where you pay for a package and inside this package everything else is covered,” he said, adding that this approach must strike a balance between fair hospital reimbursement and affordable premiums for consumers.

Dr Murallitharan added that the proposed reforms also aim to eliminate bureaucratic procedures that currently delay critical treatments, particularly for complex conditions such as cancer.

He said a more integrated insurance structure would allow patients to move through the healthcare system faster, ensuring life-saving investigations and procedures are carried out without unnecessary waiting periods.

“We are hoping things will change so that the waiting period, which sometimes stretches into weeks, can be significantly reduced through better structured insurance permissions,” he said.

According to the Base Medical and Health Insurance/Takaful (MHIT) White Paper released on Thursday, a new affordable medical insurance plan is in the works for all Malaysians, with monthly premiums as low as RM50 under the MHIT scheme, which is scheduled to be rolled out in early 2027.

There are two plans, namely the Standard Plan with the monthly premiums for those aged between 31 and 35 has been set at RM80 to RM120 per month, while for the more affordable Standard Plus, it is from RM50 to RM70.

Meanwhile, Assunta Hospital Consultant Pediatrician and Neonatologist Dr Syed Abdul Khaliq views the basic MHIT (Medical and Health Insurance/Takaful) plan as a vital starting point toward more comprehensive health protection in the future, aimed at easing the burden on both the people and the government.

He stated that the basic takaful and insurance plan is capable of assisting middle- and low-income groups affected by high medical inflation.

Dr Syed noted that out-of-pocket healthcare spending in Malaysia remains high, even among those who have insurance coverage, due to rising monthly premiums.

Regarding the proposed premium rates, Dr Syed said they are at a low level and could increase the public's access to private healthcare.

“God willing, this will help those with middle and low incomes; when the people have access to takaful and health insurance, they too can gain access to treatment at private healthcare facilities,” he said.

He added that data from last year showed many policyholders were forced to cancel their insurance because they could not afford the premium hikes, subsequently putting pressure on the public healthcare system with an increased number of patients visiting government health clinics.

On the sustainability of the healthcare ecosystem, he said the scheme has the potential to balance the distribution of patients between the public and private sectors, while also increasing access to specialist doctors.

--BERNAMA