Malaysia Medical Insurance To Curb Premium

The insurance and takaful industry has backed the government’s introduction of a base Medical and Health Insurance/Takaful (MHIT) plan under the Reset Strategy, calling it a key step to widen healthcare coverage and manage rising private healthcare costs.

In a joint statement, the Life Insurance Association of Malaysia (Liam), Malaysian Takaful Association (MTA) and Persatuan Insurans Am Malaysia (Piam) said the initiative by the Joint Ministerial Committee on Private Healthcare Costs would expand financial protection for essential healthcare needs and strengthen long-term health system reforms.

The associations said the plan would help channel private healthcare spending more efficiently and support a shift to value-based care that improves health outcomes and keeps costs under control. They added that the industry is ready to deliver the base MHIT plan nationwide in line with Bank Negara Malaysia’s (BNM) White Paper on the initiative.

They said the plan’s design includes features such as deductibles, co-payments and defined annual limits to help keep premiums and contributions stable.

Liam, MTA and Piam said the industry would work closely with BNM to finalize implementation details, with the base MHIT plan expected to be launched in early 2027. They also gave assurances on operational readiness, saying members were committed to timely claims payouts, clear communication with hospitals and efficient claims processing so patients could access care without delay.