Rising health insurance premiums driven by more than treatment costs, says LIAM

KUALA LUMPUR: The Life Insurance Association of Malaysia (LIAM) revealed that rising health insurance premiums are not solely due to escalating treatment costs. LIAM CEO Mark O Dell stated that the issue extends to increased utilization of medical services, more intricate and costly treatments, technological advancements, and the emergence of new medicines.

O Dell emphasized the need for collaboration among insurance companies, hospitals, doctors, and government entities to tackle the escalating healthcare expenses and usage. He mentioned that insurers provide policyholders with various choices, such as plans with varying levels of coverage and costs, co-payment or deductible options, and customizable benefits according to affordability.

LIAM encourages policyholders to consult their insurers or agents to identify options that align with their requirements and financial situation. Some medical card holders have been compelled to discontinue premium payments due to monthly premium hikes, while others have chosen cheaper plans with more limited coverage. O Dell highlighted the necessity to review premiums to ensure coverage remains viable and sufficient funds are available to fulfill policyholders' claims.

Key factors contributing to the rise in healthcare costs and premiums include heightened utilization of medical treatment, more complex and expensive treatments, technological progress, and the introduction of new medications. Other contributing factors include soaring healthcare service costs, an increase in non-communicable diseases (NCDs), fraud, waste, and abuse.