Govt mulls law reform to support Reset strategy against private healthcare inflation
The Prime Minister said the Health Ministry is refining the legal framework to enable initiatives under RESET, including the introduction of the Diagnosis-Related Group (DRG) payment system.
Anwar, who is also Finance Minister, said the DRG system will require the sharing of minimum clinical and financial information to promote transparency and improve cost management.
'If necessary, the government will consider amendments to other related laws under the ministry's jurisdiction to empower the overall RESET strategy,' he said in a written parliamentary reply on Wednesday (July 30).
Reset - introduced through a joint effort by Bank Negara Malaysia, the Health Ministry and the Finance Ministry - is a strategic framework comprising five core pillars and 11 key initiatives to address the rising costs of healthcare and private insurance.
It stands for Revamp insurance and takaful products, Enhance transparency, Strengthen digital health systems, Expand affordable care and Transform provider payment.
According to Anwar, the five pillars include revamping Medical and Health Insurance and Takaful (MHIT) by introducing a basic MHIT product to allow for more sustainable and stable premium pricing.
Apart from that, he said it would enhance price transparency through drug price display and publication of service price ranges, as well as consistent medical inflation estimates and standardised healthcare cost data collection.
'The third pillar is on strengthening the digital health ecosystem via electronic medical records to improve care quality and reduce repeated diagnostic testing.
'Fourth is on expanding cost-effective options through affordable non-profit hospitals and public-private partnerships with the Health Ministry.
'Fifth, to transform provider payment mechanisms by shifting to the DRG system to align cost payments with value-based care,' he said.
Anwar added that the rollout of Reset was overseen by the Joint Ministerial Committee on Private Healthcare Costs (JBMKKS), co-chaired by the Second Finance Minister and Health Minister.
Its inaugural session was held on June 24 and includes stakeholders from private hospitals, healthcare professionals, insurers, consumer groups and academia, with input from relevant associations as needed.
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