Kuala Lumpur, 23 January 2026 – The Malaysian government has unveiled a series of landmark reforms to help rein in costs in the private healthcare sector, including the introduction of a standardised base Medical and Health Insurance/Takaful (MHIT) plan and benchmark pricing for common medical procedures, in a bid to make coverage more affordable and transparent for the public.
New Base MHIT Plan Aims to Improve Affordability
At the core of the reforms is the base MHIT plan, outlined in a recently published white paper as part of the broader RESET strategy, a collaborative effort led by the Joint Ministerial Committee on Private Healthcare Costs (JBMKKS) involving the Ministry of Finance, Ministry of Health, Bank Negara Malaysia, academia and private-sector stakeholders.
The base plan is designed as a standardised, affordable baseline option for private health insurance or takaful coverage that can help individuals plan for healthcare expenses more effectively. It is expected to cover essential hospitalisation and related care, promote broader risk pooling, and encourage sustainable premium pricing across insurers and takaful operators.
According to the white paper and media reports, monthly premiums under the base MHIT plan could start as low as about RM50–RM80 for younger participants under lower-cost plan tiers, with higher bands for older age groups, while an annual coverage limit of around RM100,000 is proposed for most common treatments. Older individuals may see adjusted higher limits to ensure relevant protection over time.
The plan will remain voluntary and allow existing policyholders to switch from their current insurer without undergoing new medical underwriting, promoting smoother transitions and greater flexibility for consumers.
Price Benchmarks and Transparency Measures
A key part of the reforms is the publication of benchmark cost ranges for common procedures in private hospitals, which provides a clearer reference for patients and policyholders on expected treatment costs. These benchmarks are aimed at improving market transparency, enabling Malaysians to compare prices across providers and make more informed decisions about their care and insurance needs.
Alongside this, new consumer support tools are being introduced, including guides and calculators to help individuals estimate healthcare costs, understand insurance/takaful needs and plan household budgets accordingly.
Broader Strategy to Tackle Medical Inflation
The new base MHIT plan and the pricing benchmarks are part of a wider strategy to address medical claims inflation and strengthen the sustainability of the private healthcare ecosystem. Government officials have stressed that system-wide reforms, including improved billing transparency, better digital health systems and streamlined licensing for affordable care models, are essential for long-term cost containment and wider access to quality care.
Officials also highlighted that private sector initiatives will complement Malaysia’s public healthcare system, which continues to serve as the backbone of universal access, ensuring that quality care remains available regardless of setting.
Timeline and Next Steps
The base MHIT plan is slated for pilot implementation in the second half of 2026, with a full rollout expected in early 2027, allowing insurers and policyholders time to adapt to the new standardised framework and for additional reforms to be integrated.
