KUALA LUMPUR: A laid-back attitude is often behind the decision of many younger Malaysians to forgo health insurance, according to an insurance consultant.
"The main reason is that people assume nothing will happen to them. People don't take insurance seriously," said insurance consultant Shakir Ammer when reached by the New Straits Times.
"Even when people take out health insurance, paying for it usually becomes their last priority. They will pay every other bill, but when it comes to their insurance, they neglect it," he added, noting that many are unaware of their insurance lapsing, which leads to a rude awakening during emergencies.
Shakir also said that pre-existing conditions contribute to some people being uninsured, but this group is comparatively smaller than those who simply choose not to enrol.
"Most cases of insurance rejection are due to a lack of awareness. With increased awareness, even if someone declines it today because they cannot afford it, they may return to it later," he said.
This follows a statement by Health Minister Datuk Seri Dr Dzulkefly Ahmad in Parliament, where he said that rising medical costs in Malaysia are mainly due to out-of-pocket payments and insufficient prepaid or pooled health financing.
Federation of Malaysian Consumers Associations (Fomca) chief executive officer Saravanan Thambirajah highlighted the heavy financial burden placed on households dealing with chronic illnesses, regardless of insurance coverage.
"Expensive diagnostic tests, specialist care, and complex procedures, such as cancer treatments, are becoming increasingly unaffordable, even for insured individuals," Saravanan said.
He called for the regulation of private healthcare costs and the introduction of price caps on essential services and medicines to prevent unreasonable price hikes.
Meanwhile, economist Dr Geoffrey Williams said that insurance companies lack incentives to regulate healthcare costs, as their business model profits from them.
"Insurance companies simply use higher costs to raise insurance premiums, which increases their income," he said.
Williams also criticised the Malaysian Medical Council's (MMC) regulatory framework, claiming it "favours doctors" and does not sufficiently protect patients from rising costs.
He added that this dynamic is driving more people to rely on public healthcare, overwhelming the system.
When asked if the government should implement a universal healthcare insurance scheme to tackle inflation, Williams cautioned that it could have drawbacks.
"A universal healthcare insurance scheme is a tax by definition. If everyone has to pay, and if it is the same rate for everyone, then the poor suffer," he said.
However, he acknowledged that government regulation could help control costs, as "the government is better informed".