KUALA LUMPUR: More than 90% of medical and health insurance and takaful (MHIT) policies that underwent adjustments saw premium increases of under 10%, according to the Ministry of Finance (MOF). As of April 30, 2025, over 200,000 policies benefited from deferred premium adjustments, while more than 14,000 were reactivated.
In a written reply on the Dewan Rakyat portal, the MOF said interim measures were introduced to ease the financial burden on policyholders and maintain MHIT coverage. These include spreading premium hikes over at least three years, phasing in increases for policyholders aged 60 and above, and reinstating all policies without re-underwriting.
“Tackling medical cost inflation is a complex challenge that requires a whole-of-nation approach,” the ministry said.
To address this, the government has rolled out the RESET initiative — a collaboration between the MOF, Ministry of Health, Bank Negara Malaysia, and industry stakeholders — to curb rising healthcare costs and strengthen the private healthcare sector over the medium and long term. The initiative is overseen by the Joint Ministerial Committee on Private Healthcare Costs, co-chaired by Finance Minister II Datuk Seri Amir Hamzah Azizan and Health Minister Datuk Seri Dr Dzulkefly Ahmad.
The MOF was responding to Pang Hok Liong (PH–Labis), who questioned delays in tackling steep premium increases for private medical coverage, which have made policies increasingly unaffordable for some, prompting cancellations.
In a separate reply to Sim Tze Tzin (PH–Bayan Baru), who sought details on the government’s plan to introduce a basic MHIT product under RESET and raised concerns over using Employees Provident Fund (EPF) savings for such coverage, the MOF said the product aims to enhance accessibility.
“Purchasing the product will remain entirely voluntary,” it said, adding that policyholders can use any financial source to pay premiums. EPF members may also use savings from their Sejahtera Account (formerly Account 2) as one option, in line with the account’s purpose of supporting pre-retirement needs such as housing, education, healthcare, and insurance.
“There is no compulsion to use the Sejahtera Account if policyholders prefer other payment sources,” the ministry clarified.
The basic MHIT product’s conceptual development is expected to be completed by December 2025, with rollout planned by end-2026. Its structure and design are still being finalised, with ongoing stakeholder engagements to ensure affordability and long-term sustainability.
MHIT forms a core element of the RESET initiative, which seeks to address medical inflation — a major driver of rising insurance and takaful premiums that continue to pressure policyholders’ affordability.
