Finance Ministry, Health Ministry form joint committee to tackle rising private healthcare costs
PUTRAJAYA - The Finance Ministry (MOF) and the Health Ministry (MOH) have formalised the setting up of the Joint Ministerial Committee on Private Healthcare Costs (JMCPHC), building on ongoing engagements among various stakeholders, to address rising private healthcare and medical inflation.
The committee, which convened its first meeting today, will coordinate a whole-of-nation approach to collaboratively develop and implement measures aligned with value-based healthcare.
The JMCPHC is co-chaired by Finance Minister II Datuk Seri Amir Hamzah Azizan and Health Minister Datuk Seri Dr Dzulkefly Ahmad, with committee members consisting of representatives from MOF, MOH, and Bank Negara Malaysia (BNM).
The committee will be supported with inputs and technical advice by a Consultative Council, comprising representatives from key stakeholders across the private healthcare ecosystem, including private hospitals, insurance providers and Takaful operators (ITOs).
"Rising healthcare costs are a major concern for Malaysians, and the Madani Government is taking the lead to address it. This joint committee reflects our commitment to work with all stakeholders to shape a private healthcare system that is sustainable, transparent, and delivers real value.
"At its core, this is about protecting the wellbeing of Malaysians and strengthening the resilience of our nation," Amir Hamzah said in a joint statement by the two ministries today.
He said the JMCPHC builds upon previous groundwork, including BNM's implementation of co-pay requirements, interim measures to cushion the impact of medical premium adjustments for policyholders affected in 2024-2026, and the RESET framework.
It covers five strategic thrusts to address medical inflation, namely: Revamp Medical and Health Insurance/Takaful (MHIT); Enhance price transparency; Strengthen the Digital Health ecosystem; Expand cost-effective options; and Transform provider payments.
RESET is broadly endorsed and supported by MOF, MOH, BNM, and key industry stakeholders as the strategic framework to address rising private healthcare and insurance costs.
Moving forward, the committee will be the primary platform to guide and monitor the implementation of the initiatives under RESET. Work on the crucial RESET initiatives has commenced, particularly on the development of a base MHIT product that balances affordability and sustainability, the development of Diagnostic-Related Group (DRG) payments for phased implementation, and improving the transparency of pricing information.
For current medical insurance policyholders, these measures are intended to improve price transparency while offering more affordable options.
Over the tenure of this committee, measures to expand affordable private healthcare access will be pursued, including by strengthening the role of primary healthcare and a continuum of healthcare providers, building upon measures which have been announced previously, such as the Rakan KKM initiative.
Dzulkefly said the jointly developed RESET framework includes ongoing and planned efforts by the MOH to strengthen Malaysia's healthcare system for all.
"The framework also signifies our 'whole-of-nation' commitment to implementing solutions like value-based care, which prioritises health outcomes through the phased implementation of Diagnostic-Related Groups (DRG) and the expansion of cost-effective healthcare options for the rakyat.
"Such initiatives will deliver tangible benefits for all Malaysians who benefit through reduced overcrowding and congestion of public hospitals and clinics," he said.
The JMCPHC recognises that the successful implementation of the whole-of-nation RESET initiatives critically relies on multi-stakeholder collaboration.
"The Consultative Council is therefore essential, reinforcing the Madani Government's commitment to provide a dedicated platform for key industry stakeholders to work together collaboratively and contribute expertise towards the shared objective of ensuring affordable and accessible private healthcare for all Malaysians while fostering sustainable sector growth," the joint statement said. - BERNAMA
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