Latest news with #RakanKKM
Malaysian Reserve
18 hours ago
- Health
- Malaysian Reserve
What to do with rising medical inflation?
Malaysia is launching an ambitious healthcare transformation to address funding, accessibility and rising medical costs by GLORIA HARRY BEATTY MALAYSIA is embarking on an ambitious transformation of its healthcare landscape, unveiling a multi-pronged strategy designed to tackle long-standing issues of funding, accessibility and the escalating cost of medical care. At the Sasana Symposium 2025 organised by Bank Negara Malaysia (BNM) last week, a panel discussion titled 'Rising Cost, Rising Stakes: Expediting Reforms to Address Medical Inflation' brought together key policymakers and experts, including BNM governor Datuk Seri Abdul Rasheed Ghaffour, Health Minister Datuk Seri Dr Dzulkefly Ahmad, Treasury Secretary General Datuk Johan Mahmood Merican and World Bank senior economist Aakash Mohpal. The session explored the medical inflation containment initiative, given a codename Reset, a joint effort by BNM, Ministry of Health (MOH), Ministry of Finance (MOF) and other stakeholders. Dr Dzulkefly underlines health financing as one of his key focuses as the health minister (pic: MUHD AMIN NAHARUL/TMR) Rakan KKM: Opening New Doors During the panel discussion, Abdul Rasheed revealed that Prime Minister (PM) Datuk Seri Anwar Ibrahim had informed him of the Cabinet's approval on June 18 for the Rakan KKM initiative. Rakan KKM is a whole-of-government initiative aimed at enhancing public healthcare services through strategic collaboration with the MOH and other stakeholders. The programme focuses on strengthening hospitals and clinics while promoting both equity and sustainability in healthcare delivery. It is designed around three core objectives: Improving healthcare worker retention for better patient outcomes; increasing public health-care investment to uplift access for lower-income groups (B40) and providing more value-based options for middle-income (M40) patients amid rising medical costs. The initiative introduces a 'premium economy' tier at selected public hospitals for elective outpatient, daycare and inpatient services. This includes personalised care, the option to choose a specialist and enhanced privacy. Distinct from earlier efforts, Rakan KKM extends income support to the entire healthcare team, not just lead specialists. Crucially, surplus revenue will be reinvested to strengthen services across the public system, ensuring the programme supports long-term system resilience. The rollout will begin with a limited number of hospitals and gradually expand to most major specialist facilities nationwide. Abdul Rasheed noted that the Cabinet's green light for the programme is good news for Malaysians, noting that 'some action is happening now' in regard to the government's efforts towards improving the future of the healthcare sector, and continued enhancements are expected as 'that is where we are moving towards'. Concurrently, Dr Dzulkefly noted that while MOH has been allocated RM42.3 billion, the amount is not enough to catch up on under-spending for the sector in the last few decades. He underlined health financing as one of his key focuses as the health minister. Obtaining sufficient funding has proven to be an uphill battle, but is much needed both in the public as well as the public healthcare sectors. 'Ultimately, we need to modernise our health financing system that will be equitable, high-quality care and have sustainability as an essential characteristic. This includes a reorientation toward prevention and a careful layering of the role of private and public financing to achieve this goal. I'm just not a minister for the public sector, but also for the private sector, it is so very important that I get that done. 'Now, our current fiscal space may not allow this. I cannot keep asking the PM for more and more. Now, given this situation, I'm actually reminding him that if you don't give me the resources, allow me to be resourceful,' he said. Coupled with medical inflation, the need for sufficient funding has become even more imperative for MOH. 'I surely would have to diversify sources of income, not just from the consolidated fund…Therefore, I have come around to have a kind of a game changer of sorts for the Rakan KKM — a win-win kind of synergy with extra capacity of our public facilities, with our specialists and our healthcare team. 'So, we move away from the model of the private wing, full-paying patient, to one that we call the premium economy healthcare facilities of MOH, essentially to drive or generate revenues, to retain our specialists and at the same time, cross-subsidise our public facilities,' he said. Dr Dzulkefly said the aim is two-fold — to raise the floor by improving standards in public healthcare facilities while raising the ceiling to enable broader access to basic medical health insurance under the medical and health insurance/takaful (MHIT) scheme. MHIT refers to medical insurance and takaful products offered in Malaysia. These products are designed to cover the cost of medical treatment for illnesses or accidents, and are offered by both conventional insurers and takaful operators. He added that the initiative also serves as a form of benchmark competition, setting a reference price point to remind private healthcare providers that while they can offer similar services, they may not be able to match the affordability of the public sector. 'My overarching consideration is value-based healthcare — and that's where the diagnostics-related group (DRG) model comes in,' he said. Some elements of Reset certainly should be on track to be implemented this year, says Johan (pic: MUHD AMIN NAHARUL/TMR) Rising Medical Costs Recognising the intricate challenges posed by medical inflation, the government has formed a joint ministerial committee to spearhead long-term reforms in Malaysia's healthcare system. This was announced by Anwar on June 18 when presenting the keynote address at the same event. He said the new panel would comprise representatives from the MOF, MOH and BNM. 'When the issue of medical insurance first erupted into the public sphere, you had everyone pointing fingers. Rakyat was getting very upset with the insurance companies. The insurance company said: 'Don't blame us, it's the hospitals that are overcharging,' said Johan. 'And the hospitals said: 'No, but look, it's the insurance companies making large profits' and then everyone else (asked) what's the government going to do about it. Hence, the decision by the PM to establish this committee.' He said the committee aims to cut through the blame game by bringing together regulators, hospitals, insurers, consumer groups and medical professionals to drive long-overdue reforms. Johan stated the focus includes breaking silos between stakeholders, increasing pricing transparency, improving access to affordable insurance and exploring new financing channels, including the use of Employees Provident Fund (EPF) savings. 'At the end of the day, the committee really has to balance different interests of the different stakeholders, and particularly in the dynamics of a well-thriving economic activity. 'We need quality affordable healthcare, but at the same time (we need to) ensure that there's fair returns to the different sectors, whether it's the private healthcare, practitioners, doctors, insurance companies, so that there should at the end of the day be continued investment, continued product innovation to ensure the sustainability of the sector,' added Johan. When asked whether the committee had set clear deadlines, he said Anwar had instructed the committee that in no uncertain terms, tangible reforms must begin within the year. He noted that the proposal of Rakan KKM, which some deem as controversial, was approved by the Cabinet. 'We're very confident that some elements of the Reset (initiative) certainly should be on track to be implemented this year. At the same time, I think you also recognise (that for) healthcare reform, there's no silver bullet that can be done immediately.' Reset — which stands for revamp, enhance, strengthen, expand and transform — outlines five strategic thrusts and 11 initiatives designed to rebalance the healthcare cost ecosystem. 'The important thing is to demonstrate the seriousness of all parties showing some progress on the low hanging fruits. That hopefully also gives the credibility of these platforms like this committee to (show) that we're serious, we really want to bring all the different stakeholders to the table in terms of progressing in a very structured manner going forward for the betterment of all parties and also the healthy growth of the industry,' said Johan. This article first appeared in The Malaysian Reserve weekly print edition
Sinar Daily
21 hours ago
- Business
- Sinar Daily
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
New Straits Times
a day ago
- Health
- New Straits Times
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.
New Straits Times
a day ago
- Health
- New Straits Times
Finance, health ministries form joint committee to tackle private healthcare costs, 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.
New Straits Times
6 days ago
- Health
- New Straits Times
EPF members may soon use Account 2 for health insurance, says Dzulkefly
KUALA LUMPUR: The government is considering allowing Employees Provident Fund (EPF) members to use their Account 2 savings to pay for monthly health insurance premiums. Health Minister Datuk Seri Dr Dzulkefly Ahmad said if implemented, 16 million EPF contributors could gain access to private hospital treatments using their contributions. The proposed approach, practised in several other countries, aims to ensure broader health insurance coverage for the public. Currently, 32 per cent of healthcare costs in Malaysia are paid out-of-pocket. However, Dzulkefly stressed that participation in the scheme would be optional. "A small percentage can be used for insurance payment. They won't even feel it, as it doesn't come out of their pocket. It's from the EPF. This is the best way. Eventually, our people will have coverage like in Singapore. But we can't force it," he said. He said the members should have options as some may want broader insurance coverage available in the market. The scheme differs from the ongoing i-Lindung initiative, which only covers disability, critical illness and life protection. The government also plans to launch the 'Rakan KKM' initiative by the third quarter of this year. "For example, hospitals in Putrajaya and Cyberjaya have ward branches and operating theatres that are often underused due to staff shortages. These are considered excess capacity," he explained. Four hospitals have joined the programme so far: Cyberjaya Hospital, Putrajaya Hospital, Serdang Hospital and the National Cancer Institute (IKN). "At the same time, we're creating more room. When people go to Rakan KKM partners, it opens space for the B40 group. They'll enjoy more appointments and access to doctors. This helps the lower-income group and civil servants use public healthcare more efficiently. That's the system we want to build," he added. Fourty public hospitals with a total of 800 beds have been identified to join the Rakan KKM initiative in phases. The project involves a total investment of RM85 million, including a RM25 million allocation under the 2025 budget.
