Finance, health ministries form committee to tackle medical inflation
KUALA LUMPUR: The Finance Ministry and Health Ministry have established a joint ministerial committee to expand on ongoing stakeholder discussions to tackle the escalating costs of private healthcare and medical inflation.
The joint ministerial committee on private healthcare costs (JMCPHC), which held its first meeting today, aims to spearhead a "whole-of-nation" strategy in developing and executing initiatives that support value-based healthcare.
Co-chaired by Finance Minister II Datuk Seri Amir Hamzah Azizan and Health Minister Datuk Seri Dr Dzulkefly Ahmad, the committee includes representatives from both ministries as well as Bank Negara Malaysia.
"The committee will be supported with inputs and technical advice by a consultative council, comprising representatives from key stakeholders across the private healthcare ecosystem.
"This includes private hospitals, healthcare professionals, insurance providers and takaful operators (ITOs), consumer advocacy groups and academia," the ministries said in a joint statement.
The JMCPHC builds on earlier efforts such as Bank Negara's introduction of co-payment requirements, temporary measures to ease the burden of medical premium adjustments for policyholders between 2024 and 2026, and the RESET framework, which outlines five strategic pillars to tackle rising medical costs.
"Moving forward, the committee will be the primary platform to guide and monitor the implementation of the initiatives under the RESET.
"Work on the crucial RESET initiatives have commenced, particularly on the development of a base medical and health insurance/takaful (MHIT) product that balances affordability and sustainability, for the development of diagnostic-related group (DRG) payments for phased implementation, and improving the transparency of pricing information," they added.
The measures aim to enhance price transparency for existing medical insurance policyholders while providing more affordable healthcare options.
They also noted that throughout the committee's tenure, efforts will be made to broaden access to affordable private healthcare.
This includes reinforcing the role of primary care and establishing a seamless network of healthcare providers, building on previously announced initiatives like the Rakan KKM programme.
Amir Hamzah said the increasing cost of healthcare is a significant concern for Malaysians, and the government is taking proactive steps to tackle the issue.
"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 well-being of Malaysians and strengthening the resilience of our nation," he said.
Dr Dzulkefly highlighted that the collaboratively developed RESET framework encompasses both ongoing and upcoming initiatives by the Health Ministry aimed at enhancing Malaysia's healthcare system for everyone.
"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 DRG and the expansion of cost-effective healthcare options for the rakyat," he added.
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