PUTRAJAYA: The proposal regarding the increase in medical insurance premiums is still under negotiation, said Prime Minister Datuk Seri Anwar Ibrahim.
Anwar, who is also the finance minister, said Bank Negara Malaysia (BNM) would only finalise the premium rates after holding further discussions with the relevant parties.
"BNM's report indicates its intention to finalise the (insurance premiums) only after renegotiating (with the insurers). As of now, the process is still being renegotiated," he told reporters after attending Friday prayers at Presint 14, Putrajaya.
Last Thursday, Bank Negara Malaysia directed insurers and takaful operators (ITOs) to reassess their repricing strategies for medical and health insurance and takaful (MHIT) products to ensure a more reasonable implementation.
In a statement, the central bank said this includes managing increases in premiums/contributions over time, taking into account the impact on policy owners and takaful participants.
It said ITOs were required to offer viable options for policy owners/takaful participants who are significantly impacted by the higher premiums and contributions to continue having insurance or takaful coverage.
Bank Negara also added that further details on the available options would be announced by the insurance and takaful industry soon.
The central bank also said it remains committed to ensuring that the public continues to have access to suitable insurance and takaful products.
It acknowledged the concerns about the repricing of MHIT products by ITOs which has impacted policy owners and takaful participants.
Bank Negara said over the years, the cost of healthcare had risen significantly due to medical cost inflation and increased utilisation of medical services and procedures.
Therefore, it said comprehensive and coordinated reforms to contain medical cost inflation would be critical to preserve continued access to appropriate MHIT protection.