KUALA LUMPUR – Bank Negara Malaysia (BNM) has been urged to investigate and review the insurance companies that have issued notices of premium hikes ranging from 40% to 70% for the coming year.
Bayan Baru MP Sim Tze Tzin emphasised that BNM should not absolve itself by labelling the increases as a “business decision” made by the companies.
“We urge Bank Negara to investigate and review the insurance companies that have issued premium hikes,” Sim said.
“BNM has the authority to regulate the decisions of insurance companies. It should not just wash its hands of the matter by citing it as a business decision by the companies.
“They claim it is a free market with willing buyers and sellers. That’s not true.
“If the Ministry of Domestic Trade and Cost of Living (KPDN) can investigate or regulate excessive profits from a 10 sen price increase for an egg, why can’t Bank Negara investigate the hike of premiums by dozens, even hundreds of ringgit?
“Why can’t the authorities investigate whether private hospital charges are involved in excessive profiteering? That’s the question. This is not right. Bank Negara has a responsibility to investigate first, inform the public, and then make a decision,” he told reporters during a press conference in Parliament today.
Sim was responding to reports of the anticipated premium hikes, which range from 40% to 70%, as stated in notices sent to consumers. The increases are attributed to rising medical costs in private hospitals.
The issue has also drawn attention from Manvir Victor, Chairman of Patient for Patients Safety Malaysia, who urged the government to intervene to ensure that the public does not bear the burden of these premium hikes.
Manvir warned that the increases were unjustified and could lead many individuals to cancel their insurance policies, potentially overloading the already strained public healthcare system.
Meanwhile, the President of the Association of Private Hospitals Malaysia (APHM), Datuk Dr Kuljit Singh, stated that the increase should be reasonable for both patients and policyholders.
However, Dr Kuljit argued that if the premium hikes were aligned with improved services, they would be justified for those requiring medical treatment.
Sim also noted that he had raised concerns about private hospital charges and health insurance premiums during debates at the Health Ministry’s committee sessions.
“I welcome the Health Minister, Datuk Seri Dzulkefly Ahmad’s statement that he will hold consultations with private hospitals to achieve ‘Value-Based Healthcare’. I hope the Minister will succeed,” he said.
However, Sim expressed disappointment upon reading Dr Kuljit’s defence of the 40-70% insurance premium increase as “undeniable and reasonable.”
“This is regrettable, as he is trying to defend the indefensible.
“It is well known that the rise in health insurance premiums is directly and indirectly linked to the soaring and uncontrollable charges at private hospitals,” he said.
Sim added that the rising private hospital charges had become a burden for insurance companies, who were now “passing the cost” on to insurance policyholders, particularly those in the M40 income group.
“People take out insurance because they want better private healthcare services, but at a reasonable cost.
“Due to the sharp increase in premiums, we have found that some policyholders have stopped contributing and are now forced to return to government hospitals.
“This, in turn, adds to the burden of public hospitals, and the B40 group suffers because they have to wait longer for treatment.
“The private healthcare ecosystem is closely linked to the public healthcare system, which is funded by the Ministry of Health and the federal government.
“The rise in private hospital charges has led to higher health insurance premiums, as the two systems are interconnected,” he said. – November 27, 2024
