KUALA LUMPUR, Nov 15 — Finance Minister Anwar Ibrahim expects the uptake of health insurance copayment products to rise with wider product offerings by insurance and takaful operators (ITO) and improved consumer awareness.
In a Dewan Rakyat written reply on November 5, Anwar explained that copayment features in medical and health insurance/ takaful (MHIT) products are not new, with 285 MHIT copay products available last year from 33 insurance and takaful operators.
“The government expects broader adoption of copayment products to gradually reduce the health care utilisation rates and curb medical cost inflation. However, the impact of this policy is still being evaluated, and it’s in the early stages,” Anwar said.
He added that while the uptake of copayment products was initially low, it is expected to increase as awareness grows and more products are introduced. Tracking long-term trends in health care usage will take several years, he said in response to Gopeng MP Tan Kar Hing.
Tan had asked the finance minister about the government’s assessment of the copayment policy’s effectiveness for MHIT products that took effect on September 1, as well as the policy’s role in managing medical cost inflation.
Anwar cited experiences in countries like Singapore, where copayment products have led to better claims outcomes over time, showing 9 to 15 per cent lower claims growth and 20 per cent lower average hospital bills compared to non-copayment products.
He said the copayment feature is part of a broader strategy to manage medical cost inflation, in line with reforms outlined in the Health White Paper. This includes cost transparency, Diagnosis-Related Group (DRG) payment mechanisms, and a focus on primary care and disease prevention.
In Parliament recently, Bayan Baru MP Sim Tze Tzin complained about a 40 per cent hike to his medical insurance premiums.
“I was shocked. [My insurance agent] said claims and hospital bills have gone up, forcing an increase in premiums,” said Sim, as he urged the Ministry of Health (MOH) to control private hospital bills.
The insurance industry is regulated by Bank Negara.
As of September 1, all ITOs were required to offer MHIT products with a copayment feature, which the government said will provide consumers with more affordable options.
However, ITOs may still offer existing MHIT products without a copayment feature, allowing consumers to compare products that best suit their financial needs and health status.
