MHIT White Paper Seen Boosting Healthcare Access – CIMB Securities
KUALA LUMPUR, Jan 23 (Bernama) -- CIMB Securities Sdn Bhd views Bank Negara Malaysia’s (BNM) White Paper on the base medical health insurance/takaful (MHIT) plan as a pivotal step towards broadening healthcare accessibility, with the potential to expand the risk pool across all participating insurance and takaful operators (ITOs).
The White Paper reflects a collaborative effort between the Ministry of Finance, the Ministry of Health, BNM, and key stakeholders to address medical inflation and strengthen Malaysia’s healthcare system.
The research house said a wider risk pool could help reduce claims volatility and support more stable premiums over time.
“Execution remains critical, given the absence of direct government financial support for MHIT subscriptions and the potential resistance arising from the required co‑payment and deductible structure, which may deter B40 policyholders from participating,” it said in a note.
CIMB Securities noted that the MHIT product is expected to target individuals without existing insurance/takaful protection, as well as those seeking more affordable alternatives to current MHIT plans, particularly given steep premium increases over time, especially at older ages.
According to the White Paper, annual policy limits will be designed to cover high-volume procedures and common, complex admissions in private hospitals. Meanwhile, highly complex and costly treatments that exceed policy limits will continue to be managed within the public healthcare system.
The base MHIT plan is expected to be piloted in the second half of 2026, ahead of a market rollout in early 2027.
It will provide a standardised platform to support a phased shift from the existing fee‑for‑service (FFS) model to a diagnosis-related group‑based payment system, under which providers receive a fixed payment for each episode of care based on standardised, clinically and resource-comparable diagnosis and treatment codes.
CIMB Securities has maintained an “Overweight” stance on the sector.
-- BERNAMA