PETALING JAYA: Malaysia ranked among the highest in Southeast Asia in terms of medical costs, according to a global survey on medical trends in 2019.
It would come to a point when people could no longer afford to pay health insurance and the existing policyholders may let their policies lapse, the Consumers Association of Penang (CAP) said today.
“Private healthcare cost is one major reason for the health insurance premium increases,” CAP president Mohideen Abdul Kader said in a statement.
“It was reported in the media that 80% of people are seeking treatment at public medical facilities while the number of patients going to private hospitals dropped by 70 to 80% last year.”
Such a scenario does not benefit the nation as private hospitals will see a decline in the number of patients as people can no longer afford treatment there while public healthcare facilities will be overwhelmed, he pointed out.
The National Health and Morbidity Survey (NHMS) 2019 showed that only 22% of the population are covered by Personal Health Insurance. The vast majority depend on public hospitals for medical treatment.
CAP said it had received an increasing number of complaints by consumers about their skyrocketing health insurance premiums over the recent years.
It appears to be due to escalating medical fees charged by private hospitals, and it asked the Health Ministry (MoH) to investigate and take appropriate action.
According to Bank Negara (BNM) Annual Report 2019, the medical health insurance (MHI) claims grew by 11.6% a year between 2016 and 2019.
It stated that the “rising claims have continued to outstrip the increase in premiums” which grew by an average of 9.5% a year.
“In October 2019, the government allocated RM25 million for the Malaysian Healthcare Travel Council (MHTC) in conjunction with Malaysia Year of Healthcare Travel (MYHT) 2020,” Mohideen said.
“We believe that the soaring cost of treatment in private hospitals is due to promoting medical tourism. Priority should be given to improving our public healthcare system and not helping private hospitals maximise their profits through treating foreign medical tourists. Providing good healthcare services is incumbent upon the government in fulfilling our people’s fundamental right to life.
“The way to bring down health costs in the long term is for us to prevent serious diseases.”
CAP also urged the government to use the “sin tax” from our sugary drinks, tobacco, alcohol, and gambling to promote a healthy lifestyle and upgrade the public hospitals.
