Higher premiums loom for patients in Indonesia

Measure may be needed as national insurer faces a $1.69b deficit in 2024, says its chief

- Linda Yulisman

JAKARTA - Indonesia's national health insurance scheme (JKN), which covers 219 million active policy holders, is projected to record a 20 trillion rupiah (S$1.69 billion) deficit in 2024, raising the prospect that patients could face higher premiums.

Given the shortfall from insurance premiums collected and claims paid out, JKN may find itself unable to pay out medical claims as early as 2026, the national insurer's chief has warned.

"Failure to pay (claims) will potentially occur in 2026. That's why the premiums may be adjusted," Mr Ali Ghufron Mukti, president director of the Healthcare and Social Security Agency (BPJS Kesehatan), which manages JKN, told local media recently.

If the national insurer cannot honour these medical claims, that will be detrimental to the sustainability of quality healthcare for Indonesians, said Ms Diah Satyani Saminarsih, founder and chief executive of health rights advocacy group, Centre for Indonesia's Strategic Development Initiatives (CISDI).

"Hospitals that are not paid will not be able to continue their services and may need to be bailed out by the government," she told The Sunday Times.

A short-term measure would be to raise premiums, experts say. These currently range from 35,000 rupiah to 150,000 rupiah a month. Under the scheme, patients can receive treatment for severe and prolonged illnesses such as stroke and cancer, which cost millions of rupiah a month.