KUALA LUMPUR: Bank Negara Malaysia's announcement of interim measures for insurers and takaful operators (ITOs) to assist policyholders facing premium revisions has been met with support from the Galen Centre for Health and Social Policy.
However, concerns over the sustainability of Malaysia's healthcare financing remain.
"This is a temporary measure… the equivalent of kicking the can down the road for three years," Galen Centre chief executive Azrul Mohd Khalib said in a statement.
"It provides relief for many, especially those aged 60 and above, who were grappling with whether to continue their policies."
Earlier today, Bank Negara announced that insurers have agreed to spread the increase in medical and takaful health insurance (MHIT) premiums over a minimum of three years to keep it under 10 per cent a year.
This measure will remain in place until the end of 2026.
With this measure, at least 80 per cent of policyholders are expected to experience yearly premium adjustments due to medical claims inflation of less than 10 per cent.
Azrul said, while the move benefits consumers, it raises questions about the long-term implications.
"If healthcare inflation is expected to rise to at least 15 per cent next year, will this delay result in an inevitable drastic increase later?"
Azrul said there was a need for addressing private hospital charges, which he described as largely unregulated and a key driver of medical inflation.
"There is no compulsion or incentive for private hospitals to collaborate with insurance operators to reduce charges," he said.
He said over 60 per cent of hospital bills, including consumables, diagnostic tests, and medical devices, are unregulated.
"This component needs to be reviewed and possibly regulated," Azrul said.
Calling for stronger regulatory oversight, Azrul also proposed establishing an independent statutory commission to regulate private healthcare charges.
"A regulator, similar to the Malaysia Competition Commission (MyCC), is urgently needed," he said.