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Insurers, private healthcare providers to help fund a plan to offer basic healthcare insurance

KUALA LUMPUR: The government, together with insurers and private hospitals, will contribute RM60 million to accelerate health reforms.

Insurers and private healthcare providers alike will contribute to a fund which will help vulnerable groups gain access to basic healthcare insurance.

This was announced by BNM today as part of interim measures to address the issue of high medical inflation, which led to large hikes in insurance premiums.

"The government, together with insurers and takaful operators (ITOs) and private hospitals, will contribute RM60 million to accelerate health reforms.

"This includes the implementation of diagnosis-related group (DRG) payment model and publication of costs of common medical procedures for greater transparency.

"In addition, part of the fund will also be used to facilitate the development of a base medical and health insurance or takaful (MHIT) product that covers essential healthcare needs and facilitate policyholders aged 60 years old and above to switch to the new base product, once available," BNM said in a statement.

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