KUALA LUMPUR: Any review of repricing strategies for medical and health insurance and takaful (MHIT) products must ensure fairness for all stakeholders, particularly patients and policyholders, the Association of Private Hospitals Malaysia (APHM) said.
Its president Datuk Dr Kuljit Singh, in welcoming Bank Negara Malaysia's proposal to insurers and takaful operators (ITOs) on the matter, said private hospitals have consistently worked to optimise costs, aiming to make healthcare affordable while maintaining sustainability.
He added that without achieving this balance, private hospital operations could be compromised, affecting their ability to meet expected standards.
Dr Kuljit also highlighted the importance of all parties, including parliamentarians, fully understanding the complexities of private healthcare costs before making public statements.
"We express our gratitude to Bank Negara Malaysia for prioritising fairness in managing healthcare cost escalation in Malaysia, a challenge that is unavoidable.
"The APHM invests in independent studies that delve into the nuances of healthcare expenditure, shedding light on the significant direct and indirect contributions made to the government in terms of job creation and GDP growth.
"Furthermore, the rise in medical tourism indicates a growing preference for Malaysia due to its cost-effective treatment options," he said in a statement.
Dr Kuljit added that APHM is committed to responding to the call made by the central bank for collaboration among all relevant stakeholders, including takaful operators, the Health Ministry, consumer advocacy groups, policyholders, and major insurance providers.
"Together, we can work toward addressing the inevitable increases in healthcare and premium costs in a constructive and amicable manner," he said.
Bank Negara Malaysia yesterday had directed insurers and ITOs to reassess their repricing strategies for MHIT products to ensure a more reasonable implementation.
The central bank had said that this includes managing increases in premiums/contributions over time, taking into account the impact on policy owners/takaful participants.