MOF, EPF In Discussion Over Withdrawing Contributions For MHIT — Amir Hamzah

KUALA LUMPUR, Jan 29 (Bernama) — Discussions are ongoing between the Finance Ministry (MoF) and the Employees Provident Fund (EPF) to assess whether the concept under the base medical health insurance/takaful (MHIT) plan can be among the products allowed for withdrawal purposes.

Finance Minister II Datuk Seri Amir Hamzah Azizan said MoF expects that with the approach being taken and the support from all parties, a better system can be established, which in turn will support the healthcare system being developed by the government.

“This basic insurance is important to provide more options for the people,” he said during the Ministers' Question Time in the Dewan Rakyat today.

He was responding to Khoo Poay Tiong (PH–Kota Melaka), who asked whether the government is prepared to allow insurance purchasers to use EPF contributions to balance affordability and coverage, so that MHIT can offer comprehensive protection for the benefit of policyholders.

He also said, as an initial step, through existing insurance products, MoF expects a method to control rising costs by incorporating the concept of co-payment.

“This co-payment does not mean we are asking for high payments. Instead, we want transparency in pricing, and for the insurer providing the coverage to be responsible for controlling the cost of the healthcare services.

“With this in place, control from both the recipient and the provider (insurance company) will be much better,” he said.

Amir Hamzah said MoF continuously welcomes public feedback to improve the insurance system.

“As we all know, the pilot project will begin this June. We will test the acceptance level through this pilot project. The focus groups we have conducted currently have indicated positive responses from the target groups identified,” he said.

Separately, to a question from Roslan Hashim (PN–Kulim Bandar Baharu) on whether all insurance and takaful operators (ITOs) will be allowed to participate in the MHIT pilot project, Amir Hamzah said Bank Negara Malaysia, as the regulatory authority for the insurance industry, has opened participation to all ITOs to participate in the basic MHIT scheme.

“However, there are certain eligibility requirements they must comply with because we need to ensure that only qualified ITOs with the capacity to underwrite insurance are allowed (to participate),” he said.

Amir Hamzah also said the basic MHIT plan will be offered to all insurance companies at the same price.

“It is a basic product designed for the industry, where all ITOs will use the same pricing because we also want the premium to be standardised for everyone, and the risk to be shared among all participating ITOs.

“Expanding the scope will also allow more people to participate; we can (then) reduce the premiums further within the system implemented,” he said.

—  BERNAMA