KUALA LUMPUR, May 5 — Bayan Baru MP Sim Tze Tzin today cited complaints from at least two senior citizens who faced medical insurance premium increases of up to 50 per cent.
In one case of a 61-year-old policyholder, the person recently faced an RM3,929 increase (50 per cent) in their health insurance premium, comprising RM3,023 from a transition to the next age bracket and RM906 from medical repricing.
The 61-year-old policyholder – who purchased the policy in 2007 – reportedly expressed concerns of their premiums hitting an unaffordable RM18,000 to RM19,000, if every change of their age bracket came with a 50 per cent premium hike, that would force them to cancel their policy.
In a second case, a 65-year-old faced a 45 per cent premium increase amounting to RM4,099.50 this year from a change in their age bracket, resulting in a total annual premium of RM9,019.50. This person purchased their policy in 2008.
“Logically, policyholders only age by one day after their birthday, but their insurance premiums increase from 40 per cent to 50 per cent just because of a transition to the new age bracket. This is irrational,” Sim told a press conference in Parliament here today.
“Insurance companies offer cheap plans to customers when they’re young, but drastically hike up premiums once they hit 60 years and older based on the ‘age bracket’ excuse. What is more concerning is the fact that this increase occurs when the individual has already retired, has no fixed income, and can only rely on Employees Provident Fund (EPF) savings.
“Ultimately, senior citizens are cruelly driven to choose between paying excessive premiums or letting go of tens of years of coverage.”
Sim urged Bank Negara Malaysia (BNM) to set medical insurance premium rates, especially those related to ‘age bracket’ surges.
The government backbencher noted that the central bank’s interim measures to limit medical insurance premium increases to 10 per cent did not apply to repricing caused by a change in a policyholder’s age bracket.
“Age bracket” is defined differently by insurance companies. Some use an age range (for example, age 61-65 and age 66-70), while others base it on the number of years since the policy was purchased (for example, the first five years is counted as one bracket,)
