Kuala Lumpur: The Government has established a joint-ministry committee headed by the Minister of Finance II and the Minister of Health to examine the escalating costs of private healthcare and medicine, which have contributed to rising medical insurance premiums.
The committee, formed in June 2025, is tasked with identifying long-term solutions to the problem. Meanwhile, Bank Negara Malaysia has introduced an interim policy that caps any increase in medical insurance premiums shall not be more than 10%.
This was revealed in a written reply from the Ministry of Finance to Stampin MP Chong Chieng Jen, whose question was listed as number 10 in the Parliamentary Order Paper but was not reached during the allotted one-and-a-half-hour question time.
Chong, however, raised concerns with the Deputy Minister of Finance, highlighting that at least one local insurance company has acted to circumvent Bank Negara’s interim policy.
He cited a case involving a policyholder who has maintained a medical insurance plan with a local insurer since his 30s, with the assurance that coverage could be renewed until the age of 90.
“The individual, now 53, faces a renewal premium hike from RM4,150 this year to RM7,112 next year – a 71% increase.
“If he wants to maintain the right to renewal of the medical policy up to 90 years old. If the policyholder chooses to pay the same amount, his insurance policy will not be renewed when he attains 55 years old,” Chong said.
He added that it is common knowledge that as we age, there is a higher likelihood of us falling ill and needing the insurance coverage.
“Yet, the insurance company unilaterally changed the term of insurance and took away the policyholder’s rights to renew the policy up to 90 years old unless the insured pays a hefty 71% increased premium for the next year, and who knows how much more for the subsequent years.
“This is an exploitation of the consumers’ rights by the insurance companies, which, unless the Government takes steps to intervene, the common people, the consumers, will continue to be exploited,” he said.
