MediAsas basic medical insurance scheme to expand next year

GEORGE TOWN: The Malaysian government plans to expand its basic medical insurance scheme, MediAsas, in the coming year as part of efforts to address rising premiums and healthcare inflation, according to Deputy Investment, Trade and Industry Minister Sim Tze Tzin. The MediAsas scheme, currently in pilot phase, is set to be rolled out in the first quarter of next year.

Sim, who has been advocating for the issue of escalating medical insurance premiums and private healthcare costs, expressed concerns over the issue during a parliamentary session in 2024, resulting in government intervention. MediAsas aims to provide medical insurance for Malaysians who can afford it but are now facing burdensome premiums.

The government's expansion of the insurance scheme, part of a broader reform initiative involving 12 measures, seeks to tackle underlying factors contributing to the surge in insurance costs. By increasing the insurance pool, the government aims to better control pricing and make medical coverage more sustainable and affordable.

Sim emphasized that the scheme would cater to Malaysians who can afford insurance, while those unable to afford coverage would continue relying on public healthcare. The government's action intensified after Sim's parliamentary interventions, leading to an investigation by the Public Accounts Committee and a comprehensive report in 2025.

A joint reform effort comprising the Health Ministry, Bank Negara Malaysia, and the Finance Ministry has also been established to address private healthcare financing and insurance policies. Sim expressed optimism about the reforms' potential to control medical inflation, stating that the process would take time due to the healthcare system's complexity, but he remains confident that the measures will ease pressure on insurance premiums.