KUALA LUMPUR, August 29 — Life Insurance Association of Malaysia (LIAM) chief executive Mark O’Dell today urged Malaysians not to misunderstand his complaint about a bill from a private hospital.
In a recent interview with CodeBlue, the insurance industry veteran, who is also a permanent resident in Malaysia, disclosed his 13-page bill amounting to nearly RM19,000 from a major private hospital in the capital city for a minor hernia surgery, involving an overnight stay, last May.
O’Dell’s hospital bill for RM18,837.55 contained 95 line items across 13 different categories; he said he didn’t understand some of the line items.
CodeBlue’s report was shared widely on social media. A few people mocked the former CEO of AIA and Manulife for “complaining” about his hospital bill, pointing out that he had stayed in a suite room costing about RM2,500.
“Many of the comments miss the entire point. I wasn’t complaining about the bill so much as the way private hospitals charge for every input line item and how difficult it is for a consumer to understand,” O’Dell told CodeBlue today.
He also said that his insurer did not pay for his suite room.
“Medical claims inflation and medical care inflation is one of the highest in Asean. Something has to be done. Doctors’ charges are reasonable, but there is no control of hospital charges and no incentive for private hospitals to control costs for insured patients. Time for a change!”
In a statement issued last month to justify its mandate of minimum 5 per cent copayments on all new health and medical insurance products, Bank Negara Malaysia (BNM) noted that Malaysia’s medical inflation hit 12.6 per cent last year, significantly higher than the 5.6 per cent global average.
The central bank and insurance industry have claimed that copayments are necessary to halt a spiralling and unsustainable increase in health insurance premiums, driven by what they describe as an “over-consumption of health services”.
O’Dell called for private hospital charges to be regulated via Diagnostic Related Groups (DRG). DRG involves paying a fixed amount based on the complexity of the case, rather than itemising each charge. Hospitals would receive a set amount (for example, RM21,000) and manage their resources within that budget.
While the insurance industry is regulated by BNM, private hospital charges are unregulated, except for doctors’ fees under Schedule 13 of the Private Healthcare Facilities and Services Act (PHFSA) 1998.
Many Malaysians commenting on O’Dell’s hospital bill called for regulation of private hospital bills. CodeBlue has requested comments from Health Minister Dzulkefly Ahmad’s office on whether the Ministry of Health plans to regulate private hospital charges beyond doctors’ fees.
