KUALA LUMPUR: The amount of increase in insurance premiums must be equitable to all parties, particularly patients and policyholders, says Association of Private Hospitals Malaysia (APHM) president Datuk Dr Kuljit Singh.
He said premium increases were justified as the ecosystem must support developments in medical care and technology, which came at a cost to providers, patients and payors such as insurers.
"If the rise is too substantial, it will undoubtedly have a short- to medium-term impact. If there is a significant drop or expansion of medical coverage holders, demand for private healthcare may decline with patients migrating to public hospitals.
"However, if the increase corresponds to better coverage, it could allow those who remain covered to utilise the breakthroughs in care and technology, which does come at a cost," he told the New Straits Times.
Dr Kuljit said APHM was confident that Bank Negara Malaysia would continue to make sure payors had a variety of products available for the public to consider, and it would be up to individuals to determine which product was best for them.
He also said private hospitals would continue to have various initiatives in place to reduce cost.
APHM, he added, was also working with multiple stakeholders to determine how private hospitals could reduce regulatory cost and burden, rising medico-legal costs, and other broader policy issues that increased the cost of providing quality healthcare.
"This requires multi-stakeholder engagement, as well as government support and push. The fundamental issue in Malaysia is poor salaries, which the government is working hard to address.
"As a result, APHM supports the increase in the minimum wage and other measures that, while affecting our operational costs, are necessary."
He said the majority of the input expenditures in a hospital were not local, such as pharmaceuticals, equipment, information technology, cybersecurity and others.
All these were needed to continue delivering high-quality care while maintaining and expanding accessibility.
Dr Kuljit said breaking free from the middle-income trap and improving overall salaries would ensure that Malaysians have access to high-quality care.
"Given Malaysia's low cost base, healthcare costs will continue to rise despite multiple efforts, and premiums may need to rise to ensure the ecosystem's sustainability."
He suggested that more tax breaks should be considered over the next several years to mitigate this impact as the government works to improve income levels.
"Thus, improving public healthcare is a more sustainable and equitable solution for the entire population than overhauling private healthcare," he added.