Plan for the increase to be spread out over minimum of three years among measures

Plan for the increase to be spread out over minimum of three years among measures

- Hazlin Hassan

Amid public backlash, Malaysia's central bank on Dec 20 announced interim measures to ease the financial impact from a proposed 40 per cent to 70 per cent hike in medical and health insurance premiums that is set to take place in 2025.

"These interim measures have been introduced to alleviate the immediate financial impact to policyholders and preserve coverage," said Bank Negara Malaysia (BNM) in a statement.

Among the measures is a plan for the increase in premiums to be spread out over a minimum of three years, keeping it under 10 per cent a year for at least 80 per cent of policyholders.

Policyholders who have recently surrendered their policies due to the expected repricing can request to reinstate their medical plan, it added.

The government, together with insurance providers and private hospitals, will contribute RM60 million (S$18.1 million) to accelerate health reforms.

These include development of a base medical and health insurance product that covers essential needs and facilitate policyholders aged 60 and above to switch to it, once available.