KUALA LUMPUR, July 7 — The government-designed base medical and health insurance/takaful (MHIT) product, to be offered by private insurance and takaful operators (ITOs), has been named MediAsas.
The Ministry of Health (MOH) said in a statement yesterday that MediAsas would be piloted in the Klang Valley from the end of the month until October with the participation of selected hospitals and six ITOs – AIA Bhd, Allianz Life Insurance Malaysia Bhd, Great Eastern Life Assurance (Malaysia) Bhd, Prudential BSN Takaful Bhd, Etiqa Family Takaful Bhd, and Syarikat Takaful Malaysia Keluarga Bhd.
“The pilot programme will validate end-to-end operational readiness, including systems integration, customer journey, and operational processes in a controlled environment.
“Insights gathered from the pilot will help refine implementation arrangements ahead of the nationwide rollout in January 2027,” said the MOH.
The ministry did not specify if waiting periods would be waived and if policyholders would be allowed to submit claims on the first day of coverage. Conventional medical plans impose a 30-day waiting period, during which no illness-related claims are payable, and a 120-day waiting period for specified illnesses, including hypertension, cancer, and cardiovascular diseases, among others.
A four-month waiting period exceeds the duration of MediAsas’ three-month pilot from August to October.
Despite 120-day waiting periods stated in typical policy contracts, many doctors have said that claims are often denied if they’re submitted within two years of one’s policy.
The MOH also said yesterday that “indicative” monthly premiums for MediAsas would range from RM60 to RM550 for individuals within the entry age of up to 70 years, but didn’t specify the annual limit for either the standard plan (MediAsas Teras) or standard-plus plan (MediAsas Fleksi). Protection is up to 85 years of age.
“Final pricing will be confirmed ahead of a nationwide rollout.”
It’s unclear what MOH means by this if people purchase MediAsas during the pilot, such as whether their premiums would suddenly increase a few months later in “final pricing” during the “actual” rollout in January 2027.
Previously, Bank Negara Malaysia’s (BNM) White Paper on the Base MHIT touted RM100,000 and RM300,000 annual policy limits for the standard and standard-plus plans respectively. A whopping RM10,000 to RM15,000 deductible was proposed for the latter.
The RM550 monthly premium mentioned by the MOH yesterday – presumably for 70-year-olds under the standard plan – is higher than the initial RM500 rate mentioned in BNM’s White Paper for those aged above 75.
Insurers have said annual limits of a few hundred thousand ringgit for medical plans are no longer sufficient today. Great Eastern Life Assurance (Malaysia) Bhd CEO Koh Yaw Hui told a Public Accounts Committee (PAC) inquiry in February 2025 that he has signed off on cancer claims of more than RM1 million per admission.
According to the MOH yesterday, the Joint Ministerial Committee on Private Healthcare Costs (JBMKKS), co-chaired by Finance Minister II Amir Hamzah Azizan and Health Minister Dzulkefly Ahmad, is working on creating an independent governance board to provide ongoing oversight of MediAsas.
JBMKKs will also continue to advance other key Reset initiatives.
These include digital health adoption and electronic medical record (EMR) interoperability through the Malaysia Digital Health Certification Network (MDHCN); improving and modernising the licensing of private health care through a comprehensive review of the end-to-end licensing and registration process under the Private Healthcare Facilities and Services Act 1998 (Act 586); and enhancing billing transparency through closer collaboration among private hospitals, insurers, takaful operators and regulators.
MediAsas includes the phased implementation of the diagnosis-related groups (DRG) reimbursement system in participating private hospitals. MOH didn’t specify the “selected” hospitals participating in MediAsas, even though Association of Private Hospitals of Malaysia (APHM) president Dr Kuljit Singh attended the JBMKKS meeting yesterday.
“We are fixing the ecosystem to ensure that equitable, dignified health care is not a luxury, but a reality for all Malaysians,” Dzulkefly posted on X earlier today.
MediAsas isn’t national health insurance. It is a private health insurance product designed by the government, with premiums paid by policyholders and payouts made by ITOs.
