Experts call for government action on soaring medical insurance premiums

KUALA LUMPUR – Given the uproar over insurers and takaful operators raising medical premiums markedly much to the chagrin of the public, the government must intervene and control the price of medical insurance to ensure that they are fair and affordable.

Universiti Malaya’s Islamic Studies Academy’s Shariah and Management Department senior lecturer Dr Azian Madun said the government's intervention is crucial to prevent unnecessary and exorbitant premium hikes from being passed on to consumers and to ensure the long-term sustainability of insurance policies.

“The MADANI government which upholds ethical practices and greater transparency must interfere and take action to address this issue, otherwise insurance will become a luxury that only the wealthy can afford,” he told Bernama.

Over the past several weeks, the insurance and takaful industry has been facing a huge backlash after announcing a steep hike in medical insurance premiums reportedly between 40-70 per cent due to what they claim as high medical costs.

However, Members of Parliament (MP) highlighted at the Dewan Rakyat last week that insurers and private hospitals have been raking in strong profits and consistent revenue growth.

They expressed concern that both were passing on the high costs to consumers and policyholders who were already financially burdened by rising food prices and other costs including the rationalisation of diesel prices.

The issue caught the attention of Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim, who instructed Bank Negara Malaysia (BNM) and the Health Ministry to decide on a control mechanism to ensure premium hikes are reasonable and do not burden the people.

The MPs said policyholders complained that they were already paying the new rates which they consider too high but had no choice over concerns they might not have adequate coverage if they do not pay up.

Some can’t afford the new insurance rates and might lose coverage, according to lawmakers who cited a case where a policyholder complained that her new premium rates would soon exceed her insurance cover.

BNM will announce further details on interim measures to address the rise in insurance premiums soon.

On another note, Azian urged industry stakeholders across the healthcare system, particularly insurance companies, private hospitals and pharmacies, to be more vigilant and thoughtful in doing business, especially when it comes to balancing profit with consumers’ well-being.

“The government must control the prices set by insurance companies, private hospitals and pharmacies to ensure that they consider what level of profit is morally acceptable,” he added. - BERNAMA