The Public Accounts Committee (PAC) of the Malaysian Parliament is set to conduct five additional closed sessions in April 2025 to address the growing concern of escalating health insurance premiums in the country. These hearings will also examine the impact of private hospital charges on public health, with the committee expected to deliver a comprehensive report to Parliament in June 2025.
The surge in health insurance premiums has prompted significant public outcry, leading the PAC to hold its first-ever public hearings on the matter. PAC member Sim Tze Tzin, who represents Bayan Baru and has advocated for greater transparency in healthcare costs, noted that the committee has already conducted two public hearings and 12 closed sessions since February 2025. These discussions have involved a range of stakeholders, including the Ministry of Finance, the Ministry of Health, and Bank Negara Malaysia (BNM).
Sim told reporters that the PAC intends to invite additional stakeholders, including representatives from BNM and the Malaysian Medical Council, in an effort to strengthen the committee’s final recommendations. “We will prepare a detailed and comprehensive report next month (May 2025) before presenting it to Parliament in June 2025,” Sim said.
As part of ongoing efforts to improve transparency, Malaysia will implement a price display mandate for private clinics and hospitals starting on 1 May 2025. This policy aims to provide greater pricing clarity in healthcare services across the country.
Rising health insurance premiums in Malaysia have been a major concern, with increases ranging from 30% to 50%, despite a 10% cap set by BNM. In response to public dissatisfaction with steep hikes—some of which have exceeded 200%—BNM issued a directive in December 2024 capping annual premium increases at 10% for most policyholders. Additionally, the directive mandates that insurers and takaful operators spread the premium hikes over a three-year period.
For policyholders aged 60 and above, BNM has also introduced a one-year freeze on premium increases for minimum medical and health insurance plans, offering some relief to older Malaysians facing rising healthcare costs.
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