Govt mulls allowing EPF Account 2 for health insurance payments
PETALING JAYA : The government is considering allowing Malaysians to use the funds in their EPF Account 2 to pay for their health insurance premiums, says health minister Dzulkefly Ahmad.
If implemented, it would benefit 16 million EPF members who would have access to private healthcare, Buletin TV3 quoted him as saying.
Dzulkefly said the approach had been implemented in several countries. He also pointed out that 32% of the total healthcare costs in Malaysia were paid out-of-pocket by patients instead of being covered by insurance.
'Only a small percentage (from the EPF Account 2) would be used for the insurance payment. Members won't even feel it as it's not coming out of their pockets but their EPF accounts.
'This is the best way. At the end of the day, our people will get the necessary coverage, like in Singapore,' he said, reiterating that this would be on a voluntary basis.
Funds saved in EPF Account 2 are accessible for education, healthcare, housing, and a partial withdrawal at age 50.
For health withdrawals, they are limited to treatment costs for illnesses approved by EPF, the purchase of healthcare equipment and fertility treatments.
Bank Negara Malaysia previously called on insurers and takaful operators to review their repricing strategies for more 'reasonable implementation' after reports of a 40% to 70% hike in medical insurance premiums this year.
Insurers and takaful providers said the increased premiums were 'unavoidable' in light of rising claims and medical inflation.
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