New committee addresses private healthcare costs
The committee will include representatives from both ministries and Bank Negara Malaysia supported by a consultative council comprising key stakeholders in the private healthcare ecosystem.
'These representatives will include those from private hospitals, healthcare professionals, insurance and Takaful providers, consumer advocacy groups, and academia.
'The council will provide a dedicated platform for industry players to work together and contribute their expertise towards our shared goal of ensuring affordable and accessible private healthcare for all Malaysians,' both ministries said in a joint press statement on Tuesday (June 24).
Co-chaired by Finance Minister II Datuk Seri Amir Hamzah Azizan and Health Minister Datuk Seri Dr Dzulkefly Ahmad, the committee will plan and implement solutions to provide better healthcare value.
This will include building on previous initiatives, such as implementing co-payment requirements by Bank Negara and interim measures to reduce the impact of medical premium adjustments for policyholders from 2024 to 2026.
The committee will also work on Bank Negara's health financing initiative to reduce medical inflation, the Reset framework, focusing on five strategic thrusts, starting with restructuring medical and health insurance/Takaful (MHIT).
This will include increasing price transparency, strengthening the digital health ecosystem, expanding cost-effective care options, and reforming provider payment systems.
'The framework reflects a holistic commitment to implement solutions such as value-based care, prioritising health outcomes.
'Such initiatives will deliver tangible benefits to all Malaysians by easing congestion and overcrowding in public hospitals and clinics,' Dzulkefly said in the joint press statement.
Having held its first committee meeting on Tuesday, the ministries said key initiatives were already underway under Reset, featuring the development of basic MHIT products that balance affordability and sustainability.
Work is also being done on developing a diagnosis-related group (DRG)-based payment system for phased implementation and enhancing price transparency.
'This joint committee reflects our commitment to collaborate with all stakeholders in shaping a sustainable, transparent, and truly value-driven private healthcare system.
'Ultimately, this is about protecting the well-being of Malaysians and strengthening our nation's resilience,' Amir Hamzah said in the joint press statement.
Malaysia's current medical inflation rate stands at a noticeably high 15%, compared with the regional average of 11%, according to data from Aon International Insurance Brokers, as mentioned by Bank Negara governor Datuk Seri Abdul Rasheed Ghaffour on June 18.
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